Pegasus Town receiver mulls options to recoup $142.8m for lenders

Pegasus Town

BUSINESSDESK: The receiver for the Pegasus Town development in Canterbury is still weighing up the best way to recoup more than $142.8 million owed to its lenders.

Receivers David Ruscoe and Richard Simpson of Grant Thornton "are assessing how best to realise the company's assets to achieve the best outcome for our appointor and the company as a whole", they say in their first report.

The company's assets are made up of developed and undeveloped land, including the Pegasus Gold and Sports Club.

Messrs Ruscoe and Simpson withheld the book and realisable value of the property assets to protect their ability to get the best price for NZ Property Finance Partners, which is owed $142.8 million and called in the receivers in August.

Pegasus Town defaulted on its loan payments and was not able to reach an agreement with its lender to continue.

The secured lender is a joint venture between Goldman Sachs and Brookfield Asset Management, which bought the debt at a discount last year from Bank of Scotland International as part of a $1.3 billion portfolio in New Zealand.

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.

The receivers are continuing development work that began before their appointment and are assessing subdivision opportunities. They are also operating the golf and sports club.

They say they are not able to estimate the likelihood of any distribution to unsecured creditors owed some $3 million or $11.4 million in related party claims.

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12 Comments & Questions

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They should phone up the Dunedin City Council - they love buying sections in other towns. i.e. 120 in Jack's Point.

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Chuckle - 'within driving distance of CChurch'. Lets see how that goal measures up once Peakoil has really started chewing into family travel budgets. Won't see quite so dooable when petrol is north of $3/L.

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Hey Crowd pleaser - last time I drove from Pegasus to ChCh/Belfast it took just 9 minutes down the easy flowing motorway. Compare that to the last time I tried to drive across ChCh from New Brighton to Hornby which took 25 minutes (on horrendous roads). You do the maths on that with your $3/Litre petrol scenario! It actually costs less to drive north of the city everyday, than to drive across the city everyday!

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Yeah Crowd Pleaser I have to agree with Dingle Mouse. Strange that you have made a comment on the petrol costs for families residing in Pegasus town? Whats that about? I am a Pegasus resident & like me, at least 20 of my neighbours are earthquake refugees from the Kaiapoi Red Zone. We are all North Canterbury natives, so we shop, work, visit relatives & travel all around the North Canterbury area, just like we've always done. Why have you made a criticism about the "driving distance from Christchurch" which will "start chewing into family travel budgets" ? I live in Pegasus, work in Kaiapoi and shop in Rangiora, all just 8-9 minutes drive away. I haven't been into Christchurch city once in the last 6 weeks, because I don't need too! Again I find it a strange comment to make? Perhaps you're a troll?

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I think you'll find that Crowd Pleaser is a rival developer trying to think up any criticism or negative he can to attack the Pegasus Town development. I too am a former Kaiapoi Red Zoner trying to restart a stable family life again in Pegasus, after the horrors of the Sept2010 & Feb2011 earthquakes. It is become tiresome reading the negative & critical comments that some people write about Pegasus Town.. I can't understand these peoples need to attack the new township & its new citizens? Why? There were 900 homes in the Kaiapoi Red Zone. Thats a heck of a lot of earthquake refugees. All those people have to move somewhere, so the vast majority of Pegasus Town citizens are from North Canterbury/Kaiapoi area. Petrol costs to and from Christchurch are completely & utterly irrelevent.

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It is a shame Robertson did not get better, timely guidance from his fellow directors. There again, looking at their history, this is no surprise. What's next - a monorail!

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His fellow directors are lawyers. I see they both resigned the moment the company was put into receivership. That sort of tells you the entrepreneurial talent and courage they had. This is just another bold development dashed by a sick marketplace.

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Just to clarify your last statement that reads "another bold development dashed" - That is incorrect. The "development" of Pegasus Town is in fact booming, & at the moment it is probably the largest residential building site in the Canterbury region. New houses are being completed at a rate of one a day. What the story above states is that the "Developer" of Pegasus Town has gone into receivership due to unserviced loans. Do not get that confused with the "Development" which continues expanding & is worth a substantial multi-million book value ( which is far from "Dashed"!)

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Interesting. The inference appears to be that Robertson needed directors with genuine business minds. Clearly an ideas (dreams) man. Little credibility to those he had around him though. A historical look through their companies would confirm that.

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Driving north is lots more positive than going south, it's a very nice development so give the place what it deserves & leave the poor developer alone, he's staying put & not doing a runner like most do.

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Poor developer??! Goodness that's an interesting take on it. You wouldn't want to scratch too deep on the rest of their activities.

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I dont know alot about Pegasus, but it seems that it will be an asset to the wider community.

The front end infrastructural costs, and slowing sales, (and banksters short sightedness) probably killed off the developers equity share.

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