Hospitality and development giant Iris Capital has "sincerely apologised" for 20-month delays at its EastEnd project which have prompted one apartment buyer to label her purchase the "worst decision of my life".
The woman, who asked not to be named, said she had been forced to return to work at the age of 76 to pay her rent in Sydney after waiting five years for the second stage of the $700 million Hunter Street Mall project to be built.
The woman bought an apartment off the plan on the site of the former Soul Pattinson building in 2019 with an expected completion window of October to December 2022.
The Newcastle Herald has seen a series of "purchaser update" emails from the developer's "client care team" which have continued to push back the completion date.
In November 2021, the company changed the anticipated settlement period to the first quarter of 2023.
In June 2022, the projected completion date changed to the second quarter of 2023.
When that projected timeframe arrived, Iris notified buyers that the project had been delayed again until the third quarter of 2023.
In June 2023, the deadline changed again to the first quarter of 2024.
Last month, the company told buyers the "best estimate the builder can provide at the moment is a late July 2024 completion date with settlements taking place in August 2024".
"Since our last update in February, we regret to say that progress on site continues to be slow," Iris's April update reads.
"We have raised the lack of progress with our builders TQM on numerous occasions considering the COVID supply chain and labour issues are largely behind us, however the response from TQM is supply of resources continues to be an issue, and they are doing their best to complete the project as quickly as possible."
The elderly buyer sold her apartment in Sydney in March 2023 in anticipation of the Newcastle project being finished last year but has been forced to rent in Sydney since then.
She signed a six-month lease then was forced to move apartments in October and is facing having to move a third time when her existing lease expires.
She last came to Newcastle in January but is now so "furious" she does not want to see progress on the site.
"I don't even want to see it. It's the worst decision of my life," she said.
"I've had to go back to work at 76. Not happy.
"We've now been told August, but I have absolutely no faith in anything they tell us any more.
"There are people living in serviced apartments who have sold up.
"I'm about to find my third rental property.
"I can see my kitchen cupboards and whatever. I've been able to for six to eight months.
"There are people who paid $3.2 million. I'm not sure if they planned on living in it or not."
The woman said she had decided to buy into the Newcastle project because she did not own her Sydney property outright and it was too expensive to continue living there.
"As property values dropped post-COVID, and I was repeatedly told that I would be settling mid-2023, I sold at almost the lowest point in the market in March 2023, as many others did.
"I sold for a much lower price than I would get if I was selling now, and I have used up any extra funds in paying rent for over a year."
The woman's sunset clause, which allows a contract to be rescinded if an off-the-plan apartment is not finished by an agreed date, expired last month.
"No further extension was permitted beyond then," she said.
She said she could not afford to back out of the contract.
"I could not buy back what I've sold.
"With the rent I've paid, stamp duty, agents' fees, I'm out of pocket $110,000 without even looking at how much real estate values have gone up since I sold last March."
Iris apologised to buyers in its April update but ruled out applying for a staged occupation certificate to allow some residents into their apartments before the entire job was finished.
"Several purchasers have raised the possibility of a staged OC, given some parts of the development are at a more advanced stage of completion than others," the update said.
"This is not an option as the construction certificates and associated documentation have all been prepared based on securing a single OC for the entire development, and in addition there are authority works that must be fully complete per council consent conditions before any OC (full or part) can be issued.
"Those works, eg the public domain, will not be finished until the builder has completed the buildings."
The bulk of the 124-unit development comprises two buildings, marketed as Soul and Lyrique.
Iris told buyers in February that the interior fitout of the Soul building was 95 per cent complete and lifts, mechanical systems, power and water were "fully commissioned".
"Meanwhile, the exterior is at 90 per cent works completed, with remaining tasks focused on items such as landscaping, awnings and the public domain works."
The Lyrique building was 60 per cent complete inside and 50 per cent complete outside.
"Completion of all buildings to achieve the occupation certificate is required before settlement notice can be issued," it said.
Iris said it understood "stakeholders' frustration with the ongoing delay".
"We sincerely apologise for the inconvenience this is causing. Please be assured, we are doing everything possible to complete the development."
The female buyer said she had spoken to her solicitor, Building Commission NSW and NSW Fair Trading and "there doesn't seem to be any legal reason" Iris could not apply for a staged occupation certificate.
City of Newcastle declined to comment about whether such an application was possible, but said Iris had engaged a private certifier "to facilitate the assessment or issue of the occupation certificates for the East End development".
Iris, run by billionaire chief executive and former panel beater Sam Arnaout, owns dozens of pubs, hotels, vineyards and casinos across the Hunter and Australia.
The company has applied for development approval for the final two stages of the EastEnd project between Thorn and Newcomen streets.
The Herald contacted Iris for comment.
Know more? Contact mparris@newcastleherald.com.au
