250 East Terrace developer assures buyers apartments will be ready soon, after two years of delays
An apartment development on the edge of Victoria Park in the CBD was initially meant to be finished in 2018. Despite delays and protests, its developer says it will be completed next month.
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The developer of a luxury apartment project in the CBD has assured buyers it will be completed next month after more than two years of delays.
Work on the East Terrace project, spruiked as “SA’s most prestigious apartment development”, began in 2016 and was initially expected to be completed in 2018.
However, disputes with subcontractors have contributed to the delays in construction, which remains ongoing ahead of the revised completion date.
The project is a joint venture between 250 East Pty Ltd, whose sole director and shareholder is listed as Rodney O’Neill, and Joe Sommariva’s Pajo Projects Pty Ltd.
Mr Sommariva declined to comment on the reasons for the lengthy delays.
“The project speaks for itself with regard to social and community input as a spectacular addition to the East Terrace streetscape,” he said.
“The completion date is October 2020, and that was always the plan with all the revisions and everything.
“The project’s coming along nicely and all our clients are happy.”
Mr Sommariva declined to comment on how many of the 14 apartments had been sold and whether any purchasers had pulled out of contracts due to the lengthy delays.
The construction site was the centre of a protest last year, when a subcontractor, its employees and CFMMEU representatives confronted Mr Sommariva about alleged non-payments.
The subcontractor disputed allegations by Mr Sommariva that the issue regarded “poor work performance and incomplete works” by the subcontractor.
“As a result the builder, at further cost and significant delay, had to engage a third party to complete and or rectify the work,” Mr Sommariva said at the time.
“There have been significant delays on this project, many of which can be attributed to the dispute between this particular subcontractor.
“Invariably there will always be variations with respect to work completed and payments made under agreement in the construction and building industry.
“However solid contracts between parties provide civil and amicable protocols for addressing such variations.”
Work on the former St Andrews Hospital site, which offers sweeping views over Victoria Park, began in 2016, when the apartments were listed for sale at $2.8m to $3.8m.
In 2005, Mr Sommariva was banned by the District Court from undertaking building work for five years after his previous company operated without a licence and insurance, and oversaw a series of “negligent work”, “poor workmanship” and “bad building practices”.
