A major downtown Auckland apartment development has gone on hold, raising questions about the restoration of the St James Theatre on the site.
The planned St James suites. Photo: Supplied
Relianz Holdings has cancelled purchase agreements on hundreds of apartments and invited buyers to re-sign at higher prices, with bigger deposits.
The development is on the site of the historic St James Theatre, to which the Auckland Council has pledged $15 million for its restoration.
In a letter to hopeful buyers, Relianz said one of the two banks which had supported the project had withdrawn.
Relianz said it had also been trying to secure a fixed price contract to build the development.
St James Suites co-developer Steve Bielby said the firm remained committed to the project.