Heartland moves over toxic Nelson loan
Heartland NZ has confirmed it is taking control of a Nelson subdivision that is the security for one of its toxic loans.
The loan is one of several alluded to in last week’s full-year result from Heartland.
Mark Mountcastle, chief risk officer at Heartland, confirmed that the company had “taken charge” of the development at Artillery Place, Nelson.
The debt has grown to about $8 million with penalty interest.
The property was acquired by Victoria Properties Consolidated in 2005 for $5.4 million with an optimistic forecast of potential value of $18 million to be gleaned from section sales after rezoning.
But sales dried up and some buyers refused to settle. The subdivision consists of roading and infrastructure but no buildings.
About 150 mainly Otago investors have money in the Victoria group, which is managed by Britannia Management, whose directors include National Party director and Canterbury Westland chairman Roger Bridge and financial adviser Craig Myles.
Mr Bridge has failed to return phone calls but Mr Myles spoke to NBR ONLINE a couple of weeks ago to confirm the facts and said no loss to investors had been crystallised yet.
Mr Mountcastle says valuations have been obtained but will not say when marketing will begin or how the properties are to be sold.
More by Chris Hutching for NBR NZ Property Investor
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Comments and questions5
Is this the same Roger Bridge who is running the restat programme for the Govt in Christchurch?
Another toxic loan inherited from Marac I gather?
The SFO really to have to ask questions of previous Marac management, and their disclosure of these toxic loans to other parties to this Heartland creation!!
Earlier media reported that this loan originated from CBS rather than MARAC.
The good Doctor will not be happy to hear that CBS also wrote the occassional loan that falls over.....
Once again the old faithful CBS shareholders from Ashburton receive more bad news on the merger deal they were encouraged to agree to by local stalwart accountants, Gary Leech and Graham Kennedy.
Luckily Nelson Building Society have now entered the Ashburton market with their old core values and customer loyalty.
But who wants to listen to you anyhow...same old broken record...doom and gloom. You just bag any company trying to get ahead. Heartland have inherited some bad PGC/Marac debt but they will over come this.