Investors quiet at Blue Chip meeting

Residential property specialist Blue Chip NZ had a quiet inaugural AGM in Auckland yesterday, with not one question from investors.

But it got approval for its finance subsidiary to raise $500 million from the public in the long term.

Fifty people at the Maritime Museum were out-muscled by company founder and managing director Mark Bryers, who holds 72 per cent of the company directly but 92 per cent with associated parties - a situation NZX has demanded be changed before the end of the year.

"The associated parties won't sell, though," Bryers complained before the meeting, saying he would personally be forced to quit part of his holding to meet listing rules.

Blue Chip directors - including former politicians Wyatt Creech and John Luxton - gave themselves a pay rise of about $52,000 each. Chairman Jock Irvine said Blue Chip's rights issue this year was "disappointing" because it closed under-subscribed.

Bryers was optimistic about the company's outlook, saying it would sell 800 apartments and houses this year and had 540 residences under construction: 350 apartments and 190 stand-alone or terraced houses.

But Irvine said the $500 million was "an heroic goal" and Blue Chip Finance general manager John Francis said it was a long-term aim..