Investor in scheme resigned to losing stake

An investor in the troubled $20 million Albany property scheme is resigned to having lost his money.

Russell Walls of the North Shore said he had confidence in Albany City Property Investments' bond issue after listening to boss Kevin Podmore speak about it.

Investors have now got letters saying the scheme has hit problems and this month's interest payment is in doubt. Walls' financial adviser said his money would probably not be repaid.

He is just one of about 350 people who contributed $20 million three years ago for the first stage of Albany's $500 million expansion.

Last week, ACPI chairman Peter Brook told the investors they might not get their interest payments due on June 30 after many things had gone wrong.

Brook told the Herald this week the $20 million was at risk and ACPI executive Garry Looker laughed when asked if more than one building would rise on the 12ha sites. A hotel, office blocks, shops and houses were planned but only one partly leased commercial building rose.

Walls said he initially had confidence in the scheme and thought it had value.

"Living close to Albany in Browns Bay, I believed this investment had potential. I have been unable to contact anyone at ACPI and my phone calls have not been returned.

"After a lengthy discussion with my advisor and long-term banker, he advised me that the word in their industry was we will be very lucky to receive any money back," Walls said.

He blamed the troubles on weak legislation which would mean lost savings for "many elderly, hard working New Zealanders who have built this country by hard work ...

"Many of these people will now be in dire financial strife which in turn causes health problems and undue stress in what should be their happy twilight years.

"As a nation I am disappointed we don't stand up with government intervention and stop this disgraceful behaviour," Walls said.

Another ACPI investor Jennie Hayman said she was relying on the media to uncover issues with the Albany scheme.

A retired couple on the Hibiscus Coast had money in the scheme but did not know about its future.

An investor based in Japan said he had lost money with financiers Strategic and Hanover and it hurt to be involved in the Albany scheme.

Meanwhile, a nearby property development project by businesses closely associated with the ACPI scheme has gone ahead.

The Gateway Centre on Oteha Valley Rd has Mitre 10 Mega, Retravision and Freedom Furniture. Jan Hutcheson, retail leasing manager of Symphony Projects, said in February other shops signed up were Beds R Us, The Dogs Breakfast Trading Company, Artisans Home of NZ and Avanti Plus Cycles North Shore.