coastal

The Weiti Bay housing project, a 909-hectare coastal development north of Auckland, remains stalled in a high-stakes legal battle as creditors seek to recover more than $67 million in debt. Following a May Court of Appeal ruling, control of the land is now subject to an expressions-of-interest process managed by administrators, as warring parties contest the site’s future development and financial liability.

How did a major housing development end up in court?

The conflict stems from a partnership between the Liu family’s Green McCahill Holdings Ltd (GMHL) and developer Evan Williams’ Ara Weiti Investments Ltd (AWIL), which began in 2012. According to High Court judgments, the relationship soured when sales at the gated 150-lot community failed to meet projections, leaving loans unpaid. Justice Andrew Becroft noted in a September judgment that the Liu family’s refusal to release land titles—a strategy described as “playing chicken”—effectively halted revenue and jeopardized the project’s solvency.

What is the current status of the Weiti Bay land?

The land is currently under the control of administrators from Teneo, who took over the sale process in June. This move replaced a previously scheduled High Court-ordered auction. According to John Fisk, a senior managing director at Teneo, the shift to an expressions-of-interest process aims to benefit a broader group of creditors, which reportedly includes seven or eight parties. This follows a period where Williams’ company, AWIL, held a significant advantage, as the court previously allowed it to bid for the land by offsetting its own $67 million-plus debt against the purchase price.

Why are the financial stakes so high?

The project’s debt has ballooned due to high-interest rates and compounding costs. Justice Sarah Katz reported in May that debt owed to AWIL rose from $20 million in 2020 to over $67 million, growing by more than $1 million each month at a 21% compounding interest rate. These costs have impacted prominent figures, including philanthropist Sir Mark Dunajtschik, whose company, Lambton Quay, lent over $40 million to the project. Sir Mark testified in the High Court that the investment was among the “worst commercial decisions” of his life.

Comparison: The “Playing Chicken” Strategy

What happens if the land is sold to a third party?

If an outside buyer secures the land, the development faces potential deadlock. Because the mortgaged parcels are surrounded by property still controlled by the Liu family, any new owner would require the family’s cooperation to access and develop the site. AWIL remains a key player, as its survival depends on either acquiring the land to finish the project or recovering its debt. The Liu family continues to contest the High Court’s rulings through an active appeal in the Court of Appeal.

Frequently Asked Questions

• Who is currently managing the sale of the Weiti Bay land?
  Administrators from Teneo are managing the sale through an expressions-of-interest process.
• Why did the Liu family refuse to release land titles?
  The family sought to prevent lenders from selling the land cheaply, hoping to force a renegotiation or push the developer out of the project.
• What is the total debt involved in this dispute?
  As of the May ruling, the debt owed to AWIL alone had exceeded $67 million.
• Is the project still facing legal challenges?
  Yes, the Liu family has an appeal lodged with the Court of Appeal contesting previous High Court judgments.

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