Matauri land tender in limbo

The proposed mortgagee sale of 246ha of prime coastal Far North land at Matauri Bay is in limbo pending the outcome of further legal proceedings in the High Court at Auckland.

An application for an injunction to stop the sale by tender of tribal land held by the Matauri X Incorporation returns to the High Court this Monday.

Injunction proceedings were lodged this month by Matauri X interim administrator Kevin Gillespie on behalf of the incorporation, but were adjourned for two weeks.

Public tenders for the land have now closed in a widely advertised sale process conducted by real estate agents Barfoot & Thompson.

Barfoot & Thompson spokeswoman Marie Hosking said there had been "a strong level of inquiry" about the Matauri X land both from within New Zealand and internationally before tenders closed.

But whether any tendered price will ultimately translate into a land sale is expected to be influenced by the courts.

Instant Funding lawyer Catherine Barber said the company was "reviewing its position" as a result of the injunction aimed at stopping the mortgagee sale process. Because the matter was still before the Court, she would not comment further.

The mortgagee sale resulted from a default by Matauri X to one of two finance companies, Auckland-based Instant Funding, which has sought to recover nearly $1 million it says is owed to it. This follows Instant Funding being given priority by principal Matauri X lender Bridgecorp Finance for a $750,000 first mortgage over land in the main Matauri X block.

The incorporation is in default, owing nearly $5 million in repayments and interest to the two companies after borrowing money to invest in failed Whakatane mineral water bottling company Eternal Waters.

Meanwhile, Mr Gillespie said "encouraging discussions" had been held with the Department of Conservation and the Far North District Council over the concept of a proposed 10ha residential subdivision on Matauri X land under a 52-year lease and joint venture arrangement with Blue Water Eco Developments. The aim of this development is to raise revenue from sales of sections in the subdivision to try to repay debt owing to both Bridgecorp and Instant Funding.

"We believe it fits in with what everyone wants," Mr Gillespie said.

The area involved in the proposed subdivision was "minuscule' in terms of the total Matauri X block, and it would be sited well back from the main beachfront. Sections could be on the market by late this year.

The story so far

* Matauri X, which owns 500 hectares of land in the Far North on behalf of 430 Maori shareholders, is facing the forced sale of half its landholding.
* The tribal incorporation came unstuck when it bought into the Eternal Springs mineral water company in 2001 after borrowing $2.5 million without the approval of shareholders.
* A finance company which loaned money to Matauri X wants to recover its investment with a mortgagee sale. But the action is on hold after a series of court rulings.