Wanaka developer Par Hallberg says he has the resources to proceed with his stalled multimillion-dollar development at the Grand Mecure Oakridge Resort.
When contacted by the Otago Daily Times, Mr Hallberg said he was pleased to ‘‘clear the air'' about why construction of the development on Cardrona Valley Rd stopped at the end of February.
He hoped the builders would be back this week to complete the swimming pools, a gymnasium, a second commercial kitchen and a new reception. The facilities were ‘‘70%-80% complete'' in February, and should have been open by now.
Mr Hallberg said the global economy was the ‘‘very worst in the long time''.
After he settled the sale of 56 new units in February for $21 million and paid his bank debts, his financier did not want to reenter another arrangement.
‘‘We have had to re-fund the whole structure.''
Oakridge had not been affected by the recent collapse of several finance companies throughout New Zealand, he said.
Mr Hallberg plans to complete the $4 million infrastructure project before beginning any units in the third stage. Oakridge Resort occupies 6.5ha on Cardrona Valley Rd, about 2km from Wanaka's town centre. It was built about eight years ago as a 12-room lodge.
Infinity Ltd purchased it from the original owners and later sold it to Mr Hallberg and two other business partners in 2004.
They built the restaurant, pools and other facilities and increased the rooms to 77.
Mr Hallberg and his wife Anita bought out their business partners in 2006 and started stage two of the development.
They also entered into a franchise agreement with Accor Hotels, which resulted in the business being marketed under the Grand Mecure brand.
By February, the Hallbergs had increased the number of rooms to 177 and extended the conference room to seat 250.
In April, the franchise agreement was changed to a management agreement, and former Mecure Resort Queenstown hotel manager Fraser McKenzie moved to Wanaka to become the general manager of Oakridge.
Contrary to the rumours, Oakridge was not for sale, Mr Hallberg said.
Oakridge employs 60 staff and over the winter peak season will take on about 20 more.
Mr McKenzie said the business was a major contributor to employment in the region and Accor was committed to promoting the resort and Wanaka as a destination.
‘‘We wouldn't just move into anywhere. It is our brand, and we invest billions internationally into it,'' Mr McKenzie said.
Accor also manages Queenstown's Sofitel, Novitel, St Moritz and Mecure Resort.
Let building resume . . . Grand Mecure Oakridge Resort general manager Fraser McKenzie (left) and developer Par Hallberg are looking forward to advancing the development, following a successful refinancing deal this week. PHOTO: MARJORIE COOK
