Sharechat Logo

Luxury Whakatane apartment complex leaves $15m debt

Friday 31st December 2010

Text too small?

The developers of the luxury Quayside apartment complex in Whakatane have left a debt of almost $15 million, according to receivers.

Failed company Quayside Trustee's debts exceed $14.7m, too high to be offset by the sale of unsold apartments, which have been marked down substantially in a saturated Whakatane property market.

Twenty-nine of the 43 apartments in the George Street complex remain unsold. They are being offered for sale at an average price of $380,000, or $11 million for the lot. Prices have been reduced by $100,000 and more.

Secured creditors are the ANZ Bank and Fidelity Finance, which were owed $10.8 million and $4.0 million respectively when receivers Andrew McKay and John Cregton of Corporate Finance were appointed on September 8.

At that time, the receivers said preferential creditors - which include Inland Revenue and employees - were owed $1.5 million, while unsecured creditors were estimated to be owed $1.6 million.

It was unlikely there would be sufficient funds to meet the claims of unsecured creditors, they said.

Between the date of their appointment and November 5, the receivers obtained $191,000 as a refund from Whakatane District Council for Quayside Trustee's development contribution, including interest and GST.

Deloitte's court-ordered liquidation report on behalf of all creditors showed Quayside debts had been reduced from nearly $18 million to $14.7 million by October 14.

Quayside Trustee was incorporated in 2005 with three shareholders - accountant Greg Robison, developer John McColl and architect Mark Tatton, who designed the Quayside complex.

The apartment complex was finished in November 2009, about a year behind schedule.

 

NZPA



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report