Decision day for apartment investors

By ANNE GIBSON

Out-of-pocket investors in the Money Managers-promoted Park Terrace Property Bonds must decide next week whether to take a loss now or hold out and hope for a larger payout later.

The mainly North Island investors in the Christchurch apartment project have been offered between 67c and 70c in the dollar as a result of a $9.8 million bid by a mystery buyer to take the 45 unsold apartments.

Money Managers promoted the original investment in the 115-unit apartment to clients, but its chief, Doug Somers-Edgar, says investors should turn down the latest offer.

Tower Trust, trustee for the bondholders, is seeking their advice about whether to accept. General manager Glen Clark said: "We have not made any recommendations one way or the other because it's a case of the bondholders deciding."

Investors put $7 million into the Park Terrace development and were due to get it back in October 2000.

Bondholders meet at 10.30am on Tuesday in the seminar room at the Auckland Showgrounds, 217 Greenlane West, Epsom.