The 2.2ha site on the shores of Lake Pupuke has a CV of $74m. Photo / NZME
The 2.2ha site on the shores of Lake Pupuke has a CV of $74m. Photo / NZME
Insolvency of a company that owns a valuable 2.2ha block of bare lakeside Takapuna land has resulted in the property being marketed for sale in a campaign closing next month.
Agents say all offers will be considered.
Colliers’ Josh Coburn, Shoneet Chandand Blair Peterken acknowledged owner Lakefront Investments was in receivership and liquidation.
But they also said the land was a big development opportunity in one of the city’s most sought-after housing locations.
Auckland Council’s rating valuation for the site, which has no buildings, was $74 million, drawing annual rates of $149,000.
Lakefront’s sole director is Kerry Hitchcock, former managing director of ex-NZX listed NPT, and now involved with the Haven group but he doesn’t want to discuss the sale.
At Takapuna, the agents want expressions of interest for the Lake Pupuke site beside North Shore Hospital by March 20.
The North Shore Canoe Club sits on the property’s waterfront end at 1a Northcote Rd.
Receivers Brendon Gibson and Daniel Stoneman, of Calibre Partners, said Lakeside Investments was incorporated in December 2020 and operated as a property development business.
But defaults on a loan resulted in the financier calling them in in September.
2d Northcote Rd on the shores of Lake Pupuke at Takapuna is up for sale after its owner was declared insolvent. Photo / Colliers
Security holder Lakeside Nominees is controlled by the wealthy Smale family, also of the North Shore.
Inland Revenue was listed as being owed a further $1.04m and trade creditors were owed $663,000 in addition to that.
That resulted in total debts of $77.9m, offset by the Takapuna land, although its value was not stated. Other assets were put in the initial receivers’ report at $6.6m.
Lakeside Investments’ main asset was the 2.2ha of land on Northcote Rd and the company had been working with consultants to get resource consent to develop it, KPMG said.
Yet physical work had not yet started, the receivers said.
In October, Inland Revenue had the High Court at Auckland appoint KPMG’s Kristal Pihama and Leon Bowker as liquidators of the same business.
Their first report said Lakeside had failed to meet its tax obligations, specifically resident withholding tax.
The KPMG accountants said they had tried to schedule a meeting with Hitchcock, but said that was delayed at his request.
KPMG’s report said the land’s book value by last March was only $64.9m. That differed from the council CV.
A shareholder current account had $6.6m in it, giving total assets of about $71m.
But liabilities outstripped assets by $3.6m because the lender was owed an estimated $76m, preferential creditors were owed $1.04m and unsecured creditors a further $662,000.
Known and potentially unsecured creditors were Auckland Council for the resource consenting, A Studio Architects of Point Chevalier, Boffa Miskell, CMW Geosciences, planners Tattico and Newmarket accountants Blackmore Virtue & Owens.
Hong Kong-based Kiwis Matt McDonnell and Alia Fong said their former property manager, Haven Living Management, stopped paying them rental income from their Auckland house for five months last year. Photo / Supplied
Pukekohe homeowner Alia Fong saidHaven Living Management didn’t pay her any income for five months from July to November, although it was taking payment from the tenants. That company’s sole director is Kerry Hitchcock’s son, Alex Hitchcock.
The couple did, however, receive receipts showing money being transferred into their bank account, said expat Fong, who lives in Hong Kong with her partner.
Haven Living also failed to pay rent to some of its other landlord clients.
But the company told the Herald this happened after it adopted a new “management system” six months ago that caused “administration issues”.
Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.
