High Court Appoints Administrators to Oversee $240M Repairs at St Lukes Gardens, NZ’s Largest Leaky Building

In a landmark decision, the High Court has appointed administrators to oversee the massive repair work at St Lukes Garden Apartments, a 17-building, 285-unit complex in the Mt Albert/Sandringham area of Auckland. This project, now considered New Zealand’s largest leaky building remediation effort, is estimated to cost $240 million, with repairs expected to be completed by 2027.

The apartments, constructed between 2003 and 2011, have been plagued by weathertightness defects since 2014. Despite initial repairs funded by a $100 million settlement with Auckland Council in 2019, the project has faced significant delays and budget overruns. The body corporate, which has managed the repairs so far, has now been replaced by Deloitte as administrators, tasked with securing external funding and ensuring the work progresses without further setbacks.

Deloitte administrator Robert Campbell explained that the body corporate levies are no longer sufficient to cover the costs, and external financing is now required. The administrators will have full legal oversight of the remedial works, including the issuance of code compliance certificates and resolving all financial matters related to the project.

Justice Rebecca Edwards ruled that the appointment of administrators was necessary due to the complexity of the project and the need to manage escalating costs and delays. She noted that the remediation work had been delayed by unforeseen factors, including previously undetected defects, design challenges, and the impact of the pandemic.

While the first stage of repairs is now complete, the second stage is expected to be finished in March 2026, three years behind schedule. The remaining work is projected to be completed in 2027. The total cost has risen from an initial estimate of $85 million to over $240 million, a staggering increase that has placed immense financial pressure on unit owners.

Home Owners and Buyers Association CEO Roger Levie praised the decision, calling it the first instance where administrators were appointed in a case where the body corporate was not dysfunctional. He stated that the move would provide much-needed certainty and expertise to manage the complex and large-scale project.

The administrators will now work closely with the body corporate to secure funding and ensure the project is completed within budget and on time. The decision was supported by the majority of unit owners, who voted in favor of the appointment at a special meeting last year.

As the largest remediation project of its kind in New Zealand, the St Lukes Garden Apartments case highlights the challenges of managing large-scale building repairs and the importance of expert oversight in ensuring timely and cost-effective completion.