Pegasus Town’s debt-defying run has come to an end with the receivership of the company.
In February this year, managing director and shareholder Bob Robertson, told NBR ONLINE that sales at the development north of Christchurch had taken off again, and the development of commercial infrastructure was back on the horizon.
Mr Robertson had anticipated a surge of buying after offering 130 “subsidies” of between $30,000 and $50,000, amounting to $5 million.
The discounts have been made possible because Pegasus has bought back loans it had from troubled funder BOSI, owned by Lloyds, Mr Robertson said in February.
He said the repurchase was part of a recent deal when a partnership involving Goldman Sachs Group, and Brookfield Asset Management acquired 22 loans worth about $1.5 billion over various developments.
They incuded Pegasus Town, hotels at Kawarau, Queenstown developed by bankrupt Nigel McKenna, HSBC Tower on Auckland’s Queen St, development land at Albany on the North Shore, a Wellington hotel and properties developed by bankrupt Wellington developer Terry Serepisos.
In February, Mr Robertson said the deal discounted the loans to 34c in the dollar and he negotiated to buy the Pagasus Town portion at less than half the original value.
“There’s been a bit of interest in funders helping Christchurch people, as long as it works for them, too, of course. We got a windfall so we’re prepared to allocate some of that.”
But today, receiver Simon Thorne took control of the company after Mr Robertson was unable to finance the purchase of the discounted loans.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Google tax: Spark boss Simon Moutter says everything's above board with Southern Cross' use of tax-haven Bermuda
- Diversity advocate Adriana Gascoigne says companies with women on their boards are worth more
- The Brexit Special Edition of Foreign Affairs Scope with Nathan Smith
- In his Editor's Insight Nevil Gibson sees the worst Brexit fears realised
- The Australians doing it better? Chapman Tripp partner Roger Wallis explains