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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 is unclear whether the sections sold were part of the deal. The price was not disclosed at the time.
Receivers David Ruscoe and Richard Simpson of Grant Thornton say 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 does not 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 will not be paid, were owed almost $12 million, the report says. Messrs Ruscoe and Simpson's first report said some $11.4 million of unsecured claims were from related parties.
Preferential creditors, including employees and IRD, 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 7000 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.