Blue Chip fails to complete $25.3m deal

Listed residential real estate and financial services company Blue Chip has failed to settle on part of a $25.3 million deal to buy Landmark House in Queen St, Auckland, and many other properties.

In November, Blue Chip said it had a conditional deal to buy the ornate historic building, refurbished by developer Andrew Krukziener and Trans Tasman Properties.

All up, Blue Chip said it had struck a $25.3 million deal to buy 63 residential and three commercial properties. Now, it is going ahead with only 40 residential purchases, paying with shares.

Apart from Landmark House, Blue Chip was to buy levels one and 10 of Wollongong University College House at 155 Queen St, office unit F in Hobson St - part of the retail centre developed on the former Robbie Burns liquor outlet land - and 23 residential properties.

But yesterday Blue Chip said it had settled only one of the deals announced on November 18 - trading 40 residential properties from Empress Leisure (NZ) in exchange for issuing 692,464 shares in the company at $1.40 each.

Blue Chip's shares are trading at around $1 each.

No reasons were given for the failure of the other deals. The company said in November that settlement was conditional on it getting satisfactory valuations on all the properties.

Blue Chip released its annual report yesterday and plans to hold its inaugural annual meeting in May.

It also announced that Sydney-based Andrew Murray was an alternative director for its managing director and founder, Mark Bryers.

Murray is managing director of the new Australian subsidiary Blue Chip Financial Solutions in Sydney.