Deposits to be refunded to Panama Road development buyers

15 December 2015

Deposits to be refunded to Panama Road housing development purchasers

Buyers who purchased a property off-plan from Panama Road Developments Limited (PRDL) will have the opportunity for their deposits plus interest to be repaid before Christmas, following the Company being placed into receivership.

In a letter being sent this week the receivers, Richard Simpson and David Ruscoe of Grant Thornton are advising investors that, following analysis, it has determined that the Panama Road Development company is unable to build the house properties.

“This is a very unfortunate situation and we understand that this may be a disappointment to the purchasers. Following a thorough review, we have determined that it is not viable to complete the project as planned as increased costs mean that Panama Road Developments Limited does not have sufficient funds available to it to finish the work,” say the receivers in the letter to purchasers.

As the development will not be moving forward, buyers have been given the opportunity to cancel their sale and purchase agreement at an earlier date than is provided for in the contract. This will enable them to receive their deposit, including any interest that has accrued, straight away. Investors who return their forms prior to December 18 should receive a refund prior to Christmas.

If investors do not wish to cancel the agreement immediately, their sale and purchase agreements will be formally cancelled on expiry of the sunset clause in the contract. At that point, deposits will then be returned to those purchasers.

Buyers’ deposits are held in trust by Russell McVeagh.

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