Wednesday 24th April 2013
|Text too small?|
The North Canterbury Pegasus Town property development and its sections sold for $68.8 million, leaving unsecured creditors, who were largely related parties, out in the cold, according to the latest receiver's report.
The Todd Property Group bought the development in December last year, saying it expected to complete the town by 2015, though it's unclear whether the sections sold were part of the deal. The price wasn't disclosed at the time.
Receivers David Ruscoe and Richard Simpson of Grant Thornton said in their latest report that the development's business and assets were sold for $66.2 million and its sections for $2.6 million. Secured creditors were paid $1.8 million from the section sales, and received $65.9 million as a settlement distribution. The sale and purchase agreement also included a $117,000 transfer of cash assets.
That leaves secured creditors New Zealand Property Finance Partners, a joint venture between Goldman Sachs and Brookfield Asset Management, owed $89.5 million as at April 15, having previously been owed $142.8 million by the development.
That doesn't necessarily mean the venture is out of pocket, with the Goldman-Brookfield partnership buying the loans at a steep discount in 2011 from Bank of Scotland International as part of a larger $1.3 billion portfolio in New Zealand.
The other secured creditor, Wai Ora, was owed $368,137, while unsecured creditors, who won't be paid, were owed almost $12 million, the report said. Ruscoe and Simpson's first report said some $11.4 million of unsecured claims were from related parties.
Preferential creditors, including employees and the tax department were paid $81,121 in the period.
The receivership is expected to be completed within the next six months.
The Pegasus Town development was the brainchild of Infinity Investment Group's Bob Robertson to build a township within driving distance of Christchurch for 7,000 residents. BOSI came on board in 2005, providing a funding line of $107 million for the first development stage and a further $151 million for the second stage.
No comments yet
AIA June 2020 Monthly Traffic Update and July 2020 Preview
PCT - Delivering on strategy underpins strong operating result
KFL - August 2020 monthly update
BRM - August 2020 monthly update
MLN - August 2020 monthly update
Further COVID-19 Restrictions at SkyCity’s New Zealand Properties
FY20 results guidance met, Results date, Banking Facility
Sky sells OSB assets to NEP NZ, secures 10 year partnership
NZX fully operational - announcement re COVID-19
Heartland Market Update