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Investors are increasingly concerned about the financial health of property investment firm Blue Chip, with a number saying they are owed large sums in overdue rental payments and interest.
Blue Chip buys and manages residential rental properties on behalf of investors but one has told the Herald he was due rental payments totalling $10,000 and also some interest a week ago but did not receive any of the cash.
This week, he was told he would receive the money on Wednesday. He received just $1500 of what he was owed and was then told by a Blue Chip representative that although the company was experiencing some cash flow issues, he would receive his money the next day.
Yesterday, he had received a further payment but is still owed $5000 in rent payments and has received none of his interest. The investor said he feared for his money in Blue Chip.
Another investor told the Herald he had paid a deposit to Blue Chip more than three years ago, but the firm had yet to buy a property on his behalf and had ceased making interest payments in the past month. Those stories are similar to a number posted on the property investment website PropertyTalk.com.
According to the posts on the website forum, late rent and interest payments are only two of a number of issues Blue Chip investors say they are facing.
Meanwhile, property investment expert Olly Newland yesterday confirmed that he was continuing to work on behalf of a number of investors with issues similar to those outlined to the Herald.
"I'm in touch with Blue Chip and getting on okay and hopefully it will resolve some people's matters to everybody's satisfaction and I'm not prepared to say more than that."
However, in an October post on PropertyTalk.com, he said: "I made a demand against Blue Chip on behalf of a client after her lawyers failed to get anywhere. They eventually coughed up. The refund was over $550,000 which was the full amount. The client would have lost her home had it failed.
"It required considerable lateral thinking plus some very unorthodox tactics which cannot be discussed here. It was a sweet victory all round."
At least one other Auckland finance specialist is trying to help Blue Chip investors.
A spokesman for Blue Chip this week said the company's systems showed "our clients have been paid what has been agreed/expected".
"Blue Chip is experiencing no cash flow issues, has sufficient resources to meet its obligations to investors [and then some], is currently solvent and at no risk of becoming insolvent."
In New Zealand, Blue Chip operates as a franchise.
Blue Chip founder Mark Bryers has dismissed the issues raised by investors on PropertyTalk.com as "idle gossip".
Blue chip
According to its website, it "makes it easy for you to enjoy all the benefits of property investment, without the hassles of being a landlord".
Uses "spare equity" tied up in clients' homes and invests it in the Auckland residential property market.
Founder Mark Bryers has said Blue Chip is the largest private landlord in Auckland, with about 2500 properties.
