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'Devastated' leaky apartment owners sue for $12.7 million
Owners of a block of Thorndon apartments are claiming $12.7 million in what's believed to be Wellington's biggest leaky building claim.
The body corporate representing owners of the Stadium Gardens apartments on Thorndon Quay are claiming against the developer, builder, architect, Wellington City Council and companies involved in supplying and fitting cladding materials and windows.
Mediation of the leaky-building claim failed last year. The case is now set down for a 10-week hearing in the High Court, starting in August.
Problems with leaks, mould, rot and the costs of fighting their case had put personal and financial stress on many of the 90 families who own apartments in the building, said acting body corporate chairwoman Mary Meyers.
"The impact of this has been quite devastating for many people," said Ms Meyers, who owns a first-floor apartment. She said that, although the apartment had not leaked, she and her husband had to meet their share of the estimated $1m spent so far on maintaining the building and mounting the case.
Ms Meyers, who works as an executive assistant, said they were forced to move into cheaper rented accommodation and let their apartment so they could afford their share of the costs. These had so far run to about $35,000.
"We don't live in our apartment as we can't afford to. We rent it out so that we can pay for the fees and we rent another apartment at a cheaper rate. This is quite prevalent throughout the building.
"Basically, the whole building needs to be reclad. The cladding system on the building has failed."
She said residents had to continue with the claim to ensure the building was fixed. Many people were forced to stay or else take a big loss on the $350,000 to $800,000 they paid when the development opened about five years ago.
This was confirmed by Tommys agent John Kettle, who earlier this year listed a property with a buyer inquiry price of $295,000. He said the owners paid $421,000 for the apartment in 2005 and, if it wasn't for the "wart" that was associated with the block, it would probably be worth about $500,000.
The low asking price drew a lot of inquiries and it was under offer. Those who inquired were told the details and it would sell only to someone who was prepared to take a risk that the case would be settled. If it wasn't, the buyer would be liable for a further $160,000 towards the cost of repairing the building.
The former Survey and Land Information Department offices, known as Terralink House, was converted to apartments in a project that started about 2002.
WHAT'S WRONG WITH STADIUM GARDENS?
The body corporate representing apartment owners is claiming:
* Claddings were not installed properly and are not watertight.
* Untreated timber is rotting and there is a mould problem.
* Roof was not built as designed and rubber seals are leaking.
* Windows and doors don't meet design requirements.
* Water gets in around window frames and joints, seals are defective and wind whistles through gaps, decks and balconies leak.
The bill: Repair costs more than $11 million, legal fees and other costs more than $1m.
Who is being sued: Edgewater Apartments (in liquidation), developer Holmes Construction Wellington, Peddle Thorp & Montgomery architects, Wellington City Council, James Hardie (building product supplier), K Road No 1 (exterior coating application), Omega Windows.
Owners of a block of Thorndon apartments are claiming $12.7 million in what's believed to be Wellington's biggest leaky building claim.
The body corporate representing owners of the Stadium Gardens apartments on Thorndon Quay are claiming against the developer, builder, architect, Wellington City Council and companies involved in supplying and fitting cladding materials and windows.
Mediation of the leaky-building claim failed last year. The case is now set down for a 10-week hearing in the High Court, starting in August.
Problems with leaks, mould, rot and the costs of fighting their case had put personal and financial stress on many of the 90 families who own apartments in the building, said acting body corporate chairwoman Mary Meyers.
"The impact of this has been quite devastating for many people," said Ms Meyers, who owns a first-floor apartment. She said that, although the apartment had not leaked, she and her husband had to meet their share of the estimated $1m spent so far on maintaining the building and mounting the case.
Ms Meyers, who works as an executive assistant, said they were forced to move into cheaper rented accommodation and let their apartment so they could afford their share of the costs. These had so far run to about $35,000.
"We don't live in our apartment as we can't afford to. We rent it out so that we can pay for the fees and we rent another apartment at a cheaper rate. This is quite prevalent throughout the building.
"Basically, the whole building needs to be reclad. The cladding system on the building has failed."
She said residents had to continue with the claim to ensure the building was fixed. Many people were forced to stay or else take a big loss on the $350,000 to $800,000 they paid when the development opened about five years ago.
This was confirmed by Tommys agent John Kettle, who earlier this year listed a property with a buyer inquiry price of $295,000. He said the owners paid $421,000 for the apartment in 2005 and, if it wasn't for the "wart" that was associated with the block, it would probably be worth about $500,000.
The low asking price drew a lot of inquiries and it was under offer. Those who inquired were told the details and it would sell only to someone who was prepared to take a risk that the case would be settled. If it wasn't, the buyer would be liable for a further $160,000 towards the cost of repairing the building.
The former Survey and Land Information Department offices, known as Terralink House, was converted to apartments in a project that started about 2002.
WHAT'S WRONG WITH STADIUM GARDENS?
The body corporate representing apartment owners is claiming:
* Claddings were not installed properly and are not watertight.
* Untreated timber is rotting and there is a mould problem.
* Roof was not built as designed and rubber seals are leaking.
* Windows and doors don't meet design requirements.
* Water gets in around window frames and joints, seals are defective and wind whistles through gaps, decks and balconies leak.
The bill: Repair costs more than $11 million, legal fees and other costs more than $1m.
Who is being sued: Edgewater Apartments (in liquidation), developer Holmes Construction Wellington, Peddle Thorp & Montgomery architects, Wellington City Council, James Hardie (building product supplier), K Road No 1 (exterior coating application), Omega Windows.
This saga has been going on for many years locally, and I think it has all just been settled confidentially.
I have heard that the developer put the project together for $8 million. But the repair work is going to cost $13 million !!!!!!!!!!!!!!!!
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