A British fund management company which has put in one third of the capital involved in the $1 billion Kawarau Falls Station resort development says it is still committed to the project.
Two of the companies involved in stage one of the development were placed in receivership this week.
UK-based BlueSky Capital invested over $300 million in the development in April 2007.
From London, BlueSky Capital partner James Walker told the Otago Daily Times the company was still committed to the project.
However, it would wait for the results of the receivers' investigation, he said.
"Obviously, the news over the last few days came as a surprise to us, and we will be talking to key stakeholders to understand what it means . . . We need to better understand what's proposed [by the receivers]."
The company's website says it was one of the largest property transactions negotiated in New Zealand, to fund a 221-room intercontinental hotel, a 197-room all-suite serviced apartment hotel, a boutique luxury lodge and a luxury apartment building.
"Kawarau Falls Station is one of the jewels in the BlueSky Capital crown. It is an exclusive high end hotel and resort development project in a unique situation on the shores of Lake Wakatipu, in Queenstown, New Zealand.
"This amazing investment opportunity offers highly leveraged financial terms and is certain to produce above target returns with no entitlement or construction risk," it says.
KordaMentha were appointed receivers of Melview (Kawarau Falls Station) Developments Ltd and Melview (Kawarau Falls Station) Investments Ltd by Bank of Scotland International on Tuesday.
Bank of Scotland International is understood to have a first mortgage of up to $513 million.
KordaMentha has said funding was secured for two more weeks' construction until all options were assessed.
Mr Walker said the receiverships were isolated to the two companies in the Melview empire, which were created to build the first stage of the Kawarau Falls project.
He said the company's investment was over three stages in six or seven buildings.
One of the properties would be "high-end shared ownership" apartments, which BlueSky Capital had done similarly in Noosa and Aspen.
Some would be owned by the fund and investors in partnership with Melview, where BlueSky Capital would be involved in design and development.
"The project is being developed over a number of years, and we are very happy with that," he said.
He expected the project to continue as planned.
"Work is continuing on stage one unless receivers decide otherwise."
He said the receiverships and negative press would have an impact on the project.
However, he was confident it could move forward.
"Queenstown and New Zealand . . . [are] suffering at the moment, but popular opinion is that New Zealand will recover in a year to two years, and I expect Queenstown will as well.
"Considering the project won't be developed for a number of years [this] will work well for the companies involved. It will be completed at about the right time," he said.
The company was happy to "get behind" the unique project, he said.
