The developer behind the Bowline apartment project at Wickham has pushed back the expiry date for buyers' sunset clauses to 2026 after switching financiers.
A legal letter seen by the Newcastle Herald tells one buyer that, in accordance with the sale contract, the vendor is extending their "sunset date" to March 31, 2026.
The letter, dated September 5, says the new date is due to "delays in construction of the Building as a result of materials being delivered on site" and is at the request of the vendor's financier.
The buyer in question has been waiting three years for his apartment to be built.
Sunset clauses allow for an off-the-plan sale contract to be rescinded and buyers' deposits returned if a building is not complete by a set date.
Sale contracts typically set sunset dates a year or more later than the expected finish of a building.
Bowline developer Multipart Property has pushed back the sunset date for buyers twice before.
The Herald has reported this year about delays to the project due to water leaking into its excavated basement car park next to Newcastle Interchange.
Multipart told the Herald that it remained committed to the project, the leaks had been fixed and contractors would start work soon on pouring the first concrete slab at the site.
"Multipart appreciate the patience and understanding of the purchasers whilst we have resolved the inground challenges that are associated with constructing a three-level basement adjacent to Newcastle harbour," the company said in response to questions.
"The purchasers will undoubtedly recognise the significant capital appreciation that they have achieved during this time."
Multipart said it was not experiencing financial problems and expected to complete the 17-storey building in the second quarter of 2025.
The company started selling the apartments in 2019.
Selling agent Ryan Houston, from PRD, said Multipart had switched financiers after its previous finance partner withdrew from the project when their contract term expired.
He said he had been told the new financier required a later sunset date.
"I know the delay's painful, and we're so sorry to hear that and it's out of everyone's control, but, if they can hang in there, their apartment may be worth 30 per cent extra," he said.
Mr Houston said Multipart continued to pay PRD on time for its services.
"When you think about leading indicators of whether a developer is keen to keep proceeding, these are great indicators that they're committed to completing this job by getting a new funder, by paying marketing to sell more apartments," he said.
"Out of 118 apartments, I think we're just over 100 apartments sold. These guys are committed to getting the job done. I have full confidence."
Multipart applied successfully last year to add three storeys to the previously approved building.
