FirstBuild Homes in liquidation, receivership: 11 modular clients in limbo

Jan 07, 2024

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Eleven contracts for new homes were signed with FirstBuild Homes, which is now insolvent. Photo / Supplied

Auckland-based modular housing business FirstBuild Homes is insolvent, hitting 11 clients who signed up for affordable new places.

This is the latest in a string of modular business failures, following last week's Kiwi Modular Homes going under, owing Inland Revenue nearly $298,000.

Adam Botterill and Damien Grant, of Waterstone Insolvency, were appointed FirstBuild receivers at the weekend, following liquidator Ben Francis, of Gerry Rea Partners, being appointed at shareholder behest last week.

Botterill said today: "It's a messy situation. There are 11 building contracts at various stages. The hardest thing is these were affordable homes. It's not like they were dealing with people who had tons of spare money."

Companies Office records show financier Taiko Homes had receivers appointed. That decision was signed by Taiko's Jim Castiglione, prominent in the Auckland development sector.

Botterill said what the 11 clients would get remained uncertain.

"It's a very, very hard thing for these people to go through. There were some active projects - around two of those. There was at least one home nearing completion."

One client contacted the Herald saying he had paid FirstBuild Homes more than $500,000 but didn't have a home. He is devastated by the insolvency and wonders what rights he has to get materials for his new home which are still with the business.

FirstBuild trading as FirstBuild Homes, FirstBuild Construction and FirstBuild Homes are all in either liquidation and/or receivership. The directors are Richard Mark Holman, of Papamoa, and Robert Thomas, of St Mary's Bay.

FirstBuild said it could provide quality, a 10-year warranty and choice so affordability was enhanced, along with the speed of building and the environment was protected.

However, one client said he was told FirstBuild had not yet turned out a single dwelling, despite pictures of many homes on its website.

He would never have paid money to the business had he known they didn't have a proven track record. He is now faced with employing another business to get his new home but what happens to the $500,000 he has already paid he doesn't know.

The first liquidators’ report is yet to be issued. That might give more of an insight in to what happened to the business, what debts it has accumulated and to who, as well as any assets.

Other modular home builders to fail lately include Podular, which was headquartered in Auckland, and Australian Integrated Modular Build, which had been working for state homeowner Kāinga Ora.

In 2021, two transportable home businesses failed even after forging Government connections: NZHousing and Affordable Homes Construction of Dairy Flat, owned and directed by Ian Ralph Fotheringhame, of Orewa, hit liquidation and receivership.

Six tiny homes were being built when New Plymouth's NZ Tiny Homes failed last year. That business had built 135 homes in three years, selling for an average $150,000.

Grant Porteous, who with wife Ellie owns New Zealand's biggest house builder, G.J. Gardner, last week raised alarm about some practices. He expressed concern about people choosing builders.

"The most important key to enjoying and having a safe building experience is choosing the right builder. I’d implore people to look past fluffy brochures and grandiose names of companies. Find a builder's true worth: their proven performance history. We truly do hate seeing people hurt," he said.

In 2021, G.J. Gardner started construction of its 20,000th home since it began here nearly a quarter of a century ago. The business was established here in 1997.

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