The Springpark housing development was meant to build 420 houses in Mt Wellington in Auckland.

However, the company behind the project, Panama Road Developments Limited (PRDL), was put into receivership earlier this month.

Now the receivers, Richard Simpson and David Ruscoe of Grant Thornton, have advised investors they have determined that PRDL is unable to build the properties.

“Following a thorough review, we have determined that it is not viable to complete the project as planned as increased costs mean that PRDL does not have sufficient funds available to it to finish the work,” they said in a letter to buyers.

The receivers said that buyers who purchased a property off-plan from PRDL can have their deposits, plus any interest that has accrued, repaid before Christmas.

To do this, buyers can cancel their sale and purchase agreement at an earlier date than is stated in the contract.

Buyers who return the relevant documentation before December 18 should receive a refund prior to Christmas.

If buyers don’t want to do that, their sale and purchase agreements will be formally cancelled when the contract’s sunset clause expires. Their deposits will then be returned to them.

PRDL was the company of Auckland developer Tony Gapes.

It was also placed in receivership last year, but came out of it after just a couple of months.