Soho Square site on the market – receiver
The waterlogged Soho Square development in Auckland's Ponsonby, which owes Strategic Finance investors $70 million, is back on the market.
The waterlogged Soho Square development in Auckland’s Ponsonby, which owes Strategic Finance investors $70 million, is back on the market.
The receiver for the 1.3ha hole in the ground, Tim Downes of Grant Thornton, said a sales campaign would be headed by Bruce Whillans, principal of Ray White’s Auckland commercial operations.
Strategic Finance’s debt stands behind $23 million owed to Fortress Credit Corp (Australia) II Pty Ltd – about the same price developer Lane Kells’ Marlin Group paid for the site in 2004.
Strategic’s receiver John Fisk, of PricewaterhouseCoopers, has said in previous reports there was no hope of Strategic getting any money back from the Soho loan, which was fully written off before PWC was appointed.
Today, the site can be viewed from Auckland’s Williamson Ave where the construction hole is partly filled with rain water.
Mr Downes said his focus on the property since appointment had been on adding value via improving the permissible development on the site.
In March this year resource consent was granted for a mixed use development of 45,348sqm on the site, compared to the previous consent of 32,286sqm when the site was offered to the market in early 2010.
This had the effect of creating “a significant building envelope which can now be fine- tuned by the ultimate developer of the site.”
“There has been continuous interest in the property from a number of parties throughout this value add phase, and the time is now right to bring the property to market again” Mr Downes said, adding that he was confident of achieving a result this time.
Strategic was placed in receivership in March 2010 after being unable to make moratorium repayments to 10,000 investors owed $368 million. The receivers’ latest estimate of recovery is between 12c and 26c in the dollar for investors.
See also: Liquidators zero in on Strategic Finance transactions
Troubled Bendemeer transaction frustrates receivers
NBR staff
Tue, 17 May 2011
Tue, 17 May 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Soho Square site on the market – receiver
14608