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Todd rebrands Pegasus Town concept

The new owner of Pegasus Town – Todd Property Group – held a rebranding business breakfast last week.

Pegasus Town is a subdivision 20km north of Christchurch where the original developer, Bob Robertson of Infinity Group, recently lost the confidence of funders. 

In December 2012 Todd Property Group announced that it had bought the town from the receivers. At that time the debt owed to New Zealand Property Finance Partners was $142 million.

Evan Davies, managing director of Todd Property Group, addressed a 40-strong group of guests and outlined the benefits of the coastal subdivision – it does not overlook the beach, however, and is set back behind dunes and forests.

But aside from completing the selldown of the two-thirds sold development, Todd Property is not planning to invest in the additional commercial infrastructure promised by Mr Robertson for the original concept of Pegasus town, which is becoming another dormitory suburb similar to Rolleston, located about 20km south of Christchurch.

Mr Robertson’s list of amenities was to include a hotel, yacht club, equestrian centre, spas, office buildings and the like.

Nor will the development have quite as many residents as claimed by Mr Robertson. Mr Davies says that on completion in a couple of years there will be about 1636 sections and about 4500 residents. There are 485 sections yet to be completed, with two-thirds ready for sale this year.

New school

The biggest boost in a community sense is the relocation of the nearby Woodend School to a new facility at Pegasus to cater for the growing numbers of youngsters expected.

Mr Davies indicated that a doctor’s service and pharmacy would be an important addition to the restaurant and shop already on site.

Meanwhile, Infinity’s Mr Robertson is moving ahead with plans to develop the similarly-sized block of farm land on the opposite side of the road to be called Ravenswood.

Mr Davies of Todd Property, told NBR NZPI that it would not compete with Todd’s sales because of the time lag bringing it to market. He was comforted by the sight of cows happily chewing grass on the site.

Mr Robertson recently said he anticipated site works beginning early in 2013 and prices for the 100-odd residential sections would be cheaper.

It was not a “traditional receivership” that wrested away his control of Pegasus Town, he said.

It was a case where the new owners of the debt were demanding repayment and it was not feasible to do so while in the middle of a project.

“There were no covenants broken. We got a waiver of the covenants during the middle of the earthquakes.”

Mr Robertson also claimed he had obtained Hong Kong institutional funding to “rescue” his Pegasus development that would have matched what Todd Group had paid.

But his funding package would have required Overseas Investment Office approval, with all the attendant delays.

More by Chris Hutching

Comments and questions
7

Good article except that Rolleston is already a town of 8,000 not a dormitory suburb. Rolleston has 2 supermarkets, The Warehouse, two primary schools, with a third opening in 2016 and a High School opening in 2017. The Aquatic centre opens mid 2013 and Selwyn District Headquaters ensures Rolleston's future. Under the Land Use Recovery Plan Rolleston will have 6,371 sections to be developed soon for the rebuild.

2 supermarkets and the warehouse...

Even before it was bought by Infinity from the original mob (Southern Capital - remember them?), Pegasus was always more of a marketing exercise than a truly viable "new town" and no reputable industry players ever believed that the promised "facilities" would happen. What Todds are doing now is merely acknowledging reality. I feel sorry for the early buyers who bought the dream from one of the best marketing guys in the game, but as always "caveat emptor".

I attended the Pegasus relaunch and this was not Todd communicated. They said there will be a retail/commerical town centre at Pegasus, just not on the scale Inifinty promised.

Dear Janine, I apologise if you feel the article indicated there would not be a commercial/retail centre. But as the story points out and as you have also reinforced, it will not be on the scale promised by Bob Robertson. In an interview with me immediately after the presentation, Mr Davies indicated it might include facilities like a pharmacy, grocery store of some variety, plus a doctor's premises might be on the cards to complement the existing restaurant and convenience store. Cheers, Chris Hutching

How do you rebrand TC3 land?

The article incorrectly states that Woodend School is to be relocated to Pegasus. In fact, Woodend School is remain where it is. It is the Waikuku School that is to close and be relocated to Pegasus. This is due to open in February 2014.
Things like the new school, a medical centre, pharmacy and library will do more to establish Pegasus as a residential subdivision than the hotel, yacht club, equestrian centre and spa that were previously proposed.
I still think Pegasus has a bright future. The lovely lake setting and direct beach access give it something that other large subdivisions in Halswell, Rolleston, Kaiapoi and Prestons can't compete with.