$100m buys city blocks

Trans Tasman Properties sold its ill-fated Finance Centre in two deals worth $100 million yesterday.

Wellington property investor Sir Robert Jones will pay $42 million for the centre's best property, the high-rise Qantas House on Queen St.

Gulf Harbour and Quay Park developer Jamie Peters, of the Starline Group, will pay $58 million for Brookfields House on Victoria St, the 20-level Simpson Grierson building on Albert St and the Finance Carpark in Durham Lane.

The deals will result in Trans Tasman suffering a book loss.

Three earlier deals dating back to March collapsed, leaving Trans Tasman with a property it wanted to quit.

Author, boxing expert and former political party leader Sir Robert Jones says his deal will result in him controlling properties in Auckland, Wellington and Sydney worth $400 million.

Jamie Peters has offered $41.5 million cash and $16.5 million worth of property for his towers.

The properties he wants to exchange for a foothold in the CBD are a house in Herne Bay, a residential section in Gulf Harbour on the Whangaparaoa Peninsula north of Auckland and 11 lifestyle blocks in Canterbury.

Jones is due to settle on January 31 and Peters on April 1. Both deals are unconditional.

Trans Tasman said the properties it was selling to Peters had a book value of $62.8 million.

After deducting the costs of the sale, it would result in a book loss of $5.7 million.

Trans Tasman tried to sell the Finance Centre on March 1 for close to book value, but the deal expired on March 19.

On August 12, Wellington financier St Laurence offered $101.15 million for the properties, but on September 22, that deal also expired.

Then on September 24, Capital Properties offered $78 million cash for all the buildings except the Simpson Grierson tower, about to become vacant as its anchor tenant moves to the new Manson Developments building on Shortland St.

Capital's deal expired on October 15, so Trans Tasman executive chairman Don Fletcher said last month the properties would be divided into individual lots and sold separately.

Trans Tasman has spent millions on Qantas House and the historic Landmark House, which was part of the Finance Centre.

Serpentine escalators carrying pedestrians through the depths of Landmark House into an Albert St plaza area have been dismantled, and foyers and lifts in Qantas House have been upgraded.

A $42 million deal with a bit of biff

Sir Robert Jones took a political swing at northern property rivals, Maori and Prime Minister Helen Clark as he announced his $42 million deal yesterday.

The former boxer, now in his mid-60s, hooked them all with one solid right-wing punch.

"As politically correct Wellingtonians, we naturally sought local Auckland iwi financial advice before confirming the acquisition," he said in a statement issued by Robt Jones Holdings from its Lambton Quay headquarters.

"We have acted on the iwi proposals, namely to settle the purchase now.

"Then at election time next year, it is considered likely that the Prime Minister will visit New Zealand and we will then claim hardship and hit her up for a taxpayer subsidy.

"Iwi insist this strategy works."