Sunnynook Central is almost finished. Photo / Trade Me
Sunnynook Central is almost finished. Photo / Trade Me
A financier is surprised that a mortgagee sale has been called on almost-finished Auckland townhouses.
James Kellow of NZ Mortgages & Securities said the situation with the 15-residence Sunnynook Central at 198-200 Sunnynook Rd, Totara Vale, on the North Shore was unorthodox.
"It's unusual for a mortgagee to need tosell a property so close to completion. Normally, they would wait for titles to be issued and pre-sales to settle."
He expressed surprise that so close to the development being finished, those who had loaned money would take this step.
Kellow wondered if a caveat on the title might be forcing the developer and/or the lender to sell the properties unfinished.
But he stressed he was not familiar with the details of the deal.
Property records show a mortgage is held over the titles by New Zealand-registered ENGRW of 7a Gardner Rd, Epsom, the home of sole director and company owner Auckland businesswoman Guirong Wen.
She featured in legal disputes last decade, particularly a Court of Appeal case over a $5m fight about a lifestyle block and a separate case about a $38m golf course.
For Sunnynook Central's mortgagee sale, Barfoot & Thompson advertising says: "This boutique development of just 15 townhouses represents a not-to-be-missed opportunity for a developer to take over and add the finishing touches necessary to reap huge rewards."
The homes are two, three or four bedrooms with one or two bathrooms.
The site at 200 Sunnynook Rd, as development was being started. Photo / Google Maps
"The location is superb, near Wairau Park and Sunnynook Shopping Centre and just a short walk to Sunnynook bus station and close to motorway access too," advertising says.
George Fong and Amy Xiong of Barfoot & Thompson's Epsom agency are the sales agents running the mortgagee campaign.
Fong said he didn't know about the background of the townhouses but they had been developed by Sunnynook Central.
He stressed he was instructed to sell all 15 terraced properties: "I haven't seen any pre-sales."
Pre-sales are usually made before construction starts to fund such schemes.
Fong said he couldn't comment on that but he indicated he knew Guirong Wen, who lives in the same suburb as the agency where he works.
Attempts were made to contact her to ask why her company had called for the mortgagee sale but she did not respond.
Fong said the mortgagee sale was called for "because there had been a property law notice which had expired on February 18".
The lawyer was Stella Chan of Forest Harrison but she did not respond to questions.
Agency advertising said the mortgagee sale is via auction on April 20.
Fong said terraced homes in the area were selling in the "eights, nine, tens," indicating expectations on each place might range from $800,000 to $1m or more.
TradeMe advertising did not specify exactly how many of the places were for sale.
Barfoot & Thompson's website has individually advertised 11/198-200 Sunnynook Rd, which is for sale for $1.2m with agents Jeremy Mi and Aden Xu. It is a larger, four-bedroom property with two bathrooms and a carport.
The same agency is advertising as "sold" 2/198-200 Sunnynook Rd. Details showed that sold last September. That is a three-bedroom place with two bathrooms. No price is given.
Ray White is advertising 9/198-200 Sunnynook Rd as one of a group of eight townhouses in what it called "off-plan purchase", requiring a 10 per cent deposit and New Zealand citizenship.
That agency says seven of the homes were pre-sold. A two-bedroom one-study townhouse is being advertised for $750,000.
