Harcourts' Preet companies in liquidation, accounts indicate $6.9m shortfall

Preet Grewal of Harcourts whose companies are now in liquidation.

Liquidators have now been appointed to two Harcourts' companies, which sold and managed properties in Auckland.

On Friday, creditors appointed Mike Lamacraft of Meltzer Mason as liquidator of Preet & Co Real Estate and Preet & Co Rentals.

The companies already had Meltzer Mason staff appointed as receivers and voluntary administrators but on Friday, the next step was taken.

Former high-flying Harcourts agent Gurpreet Grewal of Harry Dreadon Rd, Papakura is the sole director of both companies.

The latest move follows revelations reported last week of creditors of the businesses expected to be out of pocket by $6.9 million, according to administrators in charge of the real estate companies.

A report from administrators Jeff Meltzer and Lamacraft on the former 10-branch Preet & Co Real Estate and Preet & Co Rentals showed the companies' financial positions late last year, based on information from director Preet Grewal.

Secured creditors were initially listed in November as BNZ claiming $10.179m and Harcourts Group wanting $1.2m, the report said. Unsecured creditors are Inland Revenue claiming $2.2m, Preet & Co Real Estate known trade creditors wanting $859,749 and Preet & Co Rentals' known trade creditors wanting $20,817.

That gave a total of $14.5m but administrators have now sold some assets and updated the financial position.

Accounts for Preet & Co Real Estate estimate a $5.2m shortfall, including bank debt of more than $1m and $1.7m owed to Harcourts Group. Accounts for Preet & Co Rentals estimate a $1.6m shortfall partly from $1.2m owed in bank debt and more than $150,000 owed to Harcourts Group.

The Herald reported in January how an investigation into "abnormalities" in the trust account of the 10-branch Auckland Harcourts business had been referred to the Real Estate Agents Disciplinary Tribunal.

No decision has yet been released on that.