Bondholders back apartment block deal

By ANNE GIBSON

Money Managers' clients owed $9.8 million from the Park Terrace property bond issue yesterday voted in favour of a deal which will get them at least part of their original investment back this year.

In an 11th-hour deal, Doug Somers-Edgar of Money Managers told the bondholders that he had managed to secure another $100,000, taking their payment up to $9.9 million.

Tower Trust general manager Glenn Clark said after the meeting that of the proxy votes received, about 85 per cent were in favour of the deal, which proposes that the bondholders get between 67c and 70c in the dollar of their original investment back. Although the final tally was unknown, he expected the vote would back the deal.

The investors in the Christchurch apartment project have been offered the part payment as a result of a $9.8 million offer from Christchurch property developer Phillip Burmester, a former director of listed Southern Capital. He has offered to buy the 45 unsold apartments.

Money Managers promoted the original investment in the 115-unit apartment block in the inner-city area to just under 700 investors promising them an attractive pre-sales tally of the units which would ensure a good return.

The bondholders have been waiting since October 2000 to get their money back.