St Laurence sale: 159pc for investors

Wellington-based real estate specialist St Laurence Investors is selling the Viaduct Carpark near the Auckland waterfront to Metro Parking for $12 million - and paying a high return to its investors.

St Laurence bought the seven-level building in October 2002 for $8.9 million but managing director Kevin Podmore said yesterday that Metro's offer price was well in excess of the building's valuation.

Metro Parking is owned by Adrian Burr and Mark Wyborn, of Viaduct Harbour Holdings, who are due to settle on the deal by October 31.

Investors bought into the building via a St Laurence proportionate ownership scheme after an initial funding scheme ran into trouble.

The building was put up by Wayne Hartner's Hartner Construction and was syndicated by Hartner and associates in a junk-bond scheme.

But investors who sank $5.4 million into the junk bonds to finance the carpark were told they were likely to get only a quarter of their money back.

So St Laurence developed a rescue plan that resulted in the proportionate ownership scheme.

Podmore said the investors would receive a 159 per cent return on their money, due to the high offer price by Metro and strong demand for inner-city parking in the building at 15-17 Sturdee St.

Those who put in $4150 for each unit in the scheme would get $6600 back. Investors will meet on August 18 to approve the proposed sale and liquidation of the property investment scheme.