Developer DDL Estates’ debt nears $100m; collapse opens door to ‘below cost’ Ellerslie apartments
Developer DDL Estates' debt has climbed to nearly $100 million following its 2023 collapse, leading to 14 unfinished apartments in Ellerslie being sold at 'below construction cost.' Lenders, including US-backed Arena Alceon and ANZREC Lender LLC, injected an additional $21.5 million to complete the projects after being left $34.56 million short.
Why it matters
This highlights the risks in the property development sector and the potential for significant losses for lenders, while also creating opportunities for buyers to acquire properties at reduced prices.
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A 23-apartment development at Arthur St in Ellerslie collapsed in 2023. It has since been finished and put on sale at the instruction of lenders trying to recoup more than $90 million they lent to the project.
Auckland apartments caught up in a dramatic property collapse are being sold at “a lot less than construction cost” as the developer’s debt nears $100 million.
Fourteen apartments are on sale at 42 Arthur St in Ellerslie, part of a 23-unit block left unfinished by developer DDL Estates in a 2023 failure that left US-backed lenders chasing tens of millions of dollars.
The company’s total claimed debt has now climbed to $98.8m, according to the latest receivers’ reports.
Thirty-two townhouses at a second development in Flat Bush were also incomplete.
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