Don Ha responds to real estate receivership

UPDATED: Don Ha has responded to news his real estate company has been put into receivership, saying this is not the end and that his staff are standing by him.

In a statement posted on his website, Mr Ha thanked customers for the calls of support he had received and said opposition companies had tried, unsuccessfully, to poach his top staff.

He said his bank had acted prematurely in tipping Don Ha Real Estate into receivership and was confident the "situation will be cleared up."

"Without going into too many details it came to my attention recently that some of the management controls and reporting systems employed by Don Ha Real Estate Ltd weren't what they should have been. I am confident that the bank which put me into receivership doesn't have a true understanding of my position. I wish they had communicated with me more before taking their action because this could have been avoided. Regardless, I am confident that within time this situation will be cleared up. We will continue to work with the receivers and work towards the best outcome for the business," Mr Ha's statement said.

"The main message today is that there is no reason for anyone connected with any of my businesses to be worried. It is very much a case of "business as usual. Agents are still being paid and vendors will continue to list properties. This whole episode will be a great learning for everyone on my management team. I am extremely positive about the future of Don Ha Real Estate Ltd and anyone who knows me will feel the same."

Don Ha Real Estate, a Ray White Group franchise, has been placed in receivership. Don Ha is a former NBR Rich Lister and horse trader.

The extent of the company's financial woes will be revealed on May 20 in the first receiver's report.

Ray White chief executive Carey Smith said receivers Grant Thornton had requested, and would receive, Ray White’s support in the receivership process.

“Grant Thornton now controls every aspect of Don Ha Real Estate, including the management of the rent roll, the sales division, financial income and expenditure, and the compliance of the agency. We have met with the receiver, consulted our legal advisers and assessed the broader implications of the receivership action. We have reached an agreement with the receiver that we will fully support the process," Mr Smith said.

“Ray White will be involved in the day-to-day management and operation of Don Ha Real Estate, with the intention of putting the business into a position where the assets and goodwill can be sold to a third party.”

In October 2009 Mr Ha managed to avoid the liquidation of his company DH Homes Trustees by settling with the party which brought the application against it.

Mr Ha came to New Zealand from Vietnam as a refugee with his family when he was nine. The family later opened bakeries in south Auckland.

He began his real estate career in 1994 and went on to win a string of industry awards. He was valued at $50 million on the 2008 Rich List but has not made the list since.