KIAMA BLUE BUYER REVOLT

SEVEN buyers of apartments in the second stage of the ritzy Kiama Blue development are attempting to back out of their purchase deals after they say they were notified of a 65-week delay in construction just two days before the expiration of their buyers sunset clause.

Stage Two of Kiama Blue consists of a five-storey, 72-room hotel apartment development which is now set to be completed by August 2007 more than 12 months later than the original completion date.

Seven of Stage Twos 25 apartment buyers who have paid deposits on properties ranging in price from $300,000-$800,000 say they exchanged contracts over a year ago and were given a sunset clause of July 31. They say the developer has failed to communicate delays with the site which was cleared for a year after workers downed tools over unpaid wages and now want their deposits back.

Developer Mark Colys yesterday confirmed seven buyers were attempting to pull out, but said the reasons for what he conceded was a lengthy delay were entirely valid.

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He said the delays with construction of Stage Two were justifiable and had been unavoidable, blaming issues with Kiama Councils Local Environment Plan.

Its purely to do with compliance with Councils LEP and how that affected our product disclosure statement and subsequent loan facilities, said Mr Colys yesterday.

The buyers now trying to rescind their contracts say they should have been notified before July 31 of the lengthy delay.

We were told nothing, said one buyer, who did not want to be named.

Local people may have been aware that no work was taking place on the site, but as buyers from out of the area we certainly werent.

I was shocked to receive such late notice that there would be a delay of more than a year thats just ridiculous how are we expected to wait that long and have our money tied up for that length of time.

The construction site was vacant for 12 months last year when workers downed tools claiming they were owed $1 million in unpaid wages.

Mr Colys said the current dispute concerned just seven of the 25 Stage Two apartments sold off the plan.

Its now a legal contractual matter concerning these seven buyers, but at the end of the day the delay was completely justifiable.

Im a little bemused as to why they are going to the media when we are in the process of getting more information to them to clarify the reasons for the delay, said Mr Colys.

Mr Colys said he was confident the matter would be resolved.

There were clear reasons for the delay and those issues have been resolved and Stage Two is powering along, said Mr Colys solicitor on Monday.

It is a long delay but there are valid reasons. As the matter may end up in court, I cant make any further comment, he said.

The buyers actions come on the heels of what has otherwise been a successful opening period of Kiama Blues Stage One.