Sudima Christchurch City, a new $ 40 million hotel in Christchurch, opened in June 2019, with 86 rooms.
The developer behind one of the newest hotels in Christchurch is in liquidation.
Following the completion of the luxurious Sudima Hotel and the adjoining $ 40 million office building, Kilmour Properties 2014 Ltd sold the Sudima Complex in May. The hotel was opened in June.
Kilmour shareholders in Auckland have put the company in liquidation with at least 17 creditors, including the Christchurch City Council.
The sale is settled and the price that has not yet been announced is estimated to be slightly over $ 30 million.
* The facing company in liquidation joins the collapse of the construction sector
* The hotel and apartment at the CBD in Christchurch is stuck
* Work starts at $ 40 million new hotel Sudima
* New $ 35m hotel and offices of Sebel for Victoria St
The boutique-style hotel has 86 rooms and suites plus a restaurant and a day spa.
The only director of Kilmour is Neil Bar. Its shareholder is St Francis Trustee Ltd, which consists of a group of investors in Auckland, with Barr being the only registered director and shareholder.
Creditors include construction companies, consultants and suppliers.
The first report of liquidator Clive Bish of Ecovis KGA Ltd said the hotel's development "did not take place entirely as planned."
"Liquidators understand that the project has suffered considerable delays that have led to expenditure overruns, leaving considerable debt owed to financiers after completion, along with other unpaid amounts to the developer and other consultants," the report said.
Originally the hotel had to be built for the Accor chain and run under its Sebel brand.
Instead, a deal was signed with Sudima and the work began, the site of the former office building of the Salisbury corner and Montreal sts from Victoria St in 2017.
Kilmour had always intended to sell the hotel and the offices after it was over. He initially sought $ 21.5 million and $ 13.5 million respectively for the hotel and office building, or $ 35 million for both, and later valued $ 40 million.
Industry sources claim the project seemed to many people, as if it would cost too much to finish the expected return.