Krukziener seeking nod to manage family trust

Andrew Krukziener. Photo / Greg Bowker

Bankrupt developer Andrew Krukziener has applied for permission to manage a family trust that will oversee the restoration of a multi-million dollar Auckland mansion.

Krukziener, known for developing the Metropolis in Auckland, declared himself bankrupt on December 15 after a long-running battle with the Inland Revenue Department. He owes creditors an estimated $47 million.

As a bankrupt, Krukziener is not allowed to manage or control any business without permission from the Official Assignee. Deputy Assignee Pete Seufatu said Krukziener had applied to work as a project manager for his family trust, Krukziener Properties Trust. His application was being considered.

"We made it clear to him that the consent, once drawn up by OA, will be that he's working for the trust," said Seufatu.

The trust has been appointed development manager of a project to develop Rocklands Hostel on Gillies Ave, Epsom.

The property is being bought from the Government of French Polynesia by a company called Rocklands Epsom Ltd.

Sole director and shareholder Cheng Qin said: "It is our intention to refurbish and restore the historic home and continue the hostel operation on the property."

The French Polynesians bought Rocklands for $7.6m in 2006, intending to use it for diplomatic and tourism staff. It was put up for sale after a change of government.

The Tahitian media reported that the highest bid at an auction last August was only $3.7m. Its most recent rating valuation was $6.7m.

A bankrupt's assets and property are automatically taken over by the OA. They are not allowed to own anything except household effects, a car worth a maximum of $5000 and cash of up to $1000. At his bankruptcy, Krukziener listed his address as a rented $8.5m home in St Heliers.