“Major headwinds have caused us to rethink the project and whether we can deliver it as planned,” Young’s letter says.
“We have recently learned about increased risks to the project due to changes in the lending landscape, higher construction costs and slow apartment sales.”
Shareholders were given until June 2 to vote on whether they wanted construction to go ahead. Votes would be weighting according to shareholding size, but the vote would be non-binding.
“We have a small window to halt the project now, or continue on in light of the increased risks,” the letter says.
Iain McGregor/Stuff
The project had been budgeted $14 million, but costs had increased another $1m, it says.