Shock as Pegasus Town falters
Project defied doomsayers throughout the post-global financial crisis but has now succumbed to receivership.
Hot Topic
Long reads
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.
Chris Hutching
Fri, 17 Aug 2012
Fri, 17 Aug 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Shock as Pegasus Town falters
23049