KiwiBuild development

PHOTO: Wellington apartment complex –  TVNZ

The Government’s been forced to step in and guarantee a Wellington KiwiBuild apartment development for $40 million after repeated delays.

The Government will guarantee Monark apartments, 44 of which are KiwiBuild, for $40 million. Source: 1 NEWS

The deal means if the developer can’t sell the apartments, the Government will be forced to buy them for $500,000 each.

The $40 million underwrite is double the previous figure after Monark’s developer sought extra assistance.

Demolition work is underway at the Monark site in the capital’s CBD which, when completed, will feature 93 one- and two-bedroom new apartments – 44 of them being KiwiBuild houses.

The development was originally due to be completed in July this year.

First that was extended until December this year.

Then the Wellington Company, which is in charge of the development, delayed it again until October 2021.

In May, the Wellington Company cited Covid-19 as the reason for its latest delayed construction target of June 2022.