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Duke & Cooke Property News |
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Published on: 15th February 2010 MONACO RESORT INVESTOR TROUBLES MONACO RESORT INVESTOR TROUBLESA Nelson company that developed the $60 million Grand Mercure Nelson Monaco appears to have struck financial problems. A Wellington-based investor who said he purchased a unit in the resort with a ‘‘guaranteed’’ 8 per cent return has filed an application to put the Monaco Village Ltd into liquidation. Warwick Walbran said his consultancy company purchased the one-bedroom unit about two years ago for $270,000. ‘‘None of the guaranteed returns has been paid that I know of,’’ he said. Other investors had supported him in filing the application, as they were also being held liable for ongoing costs associated with the units without receiving the promised income, he said. ‘‘ Outgoings could well exceed incomings.’’ Scott Sanders, the developer and part-owner of the Grand Mercure Nelson Monaco, told the Nelson Mail today the guaranteed 8 per cent return had been based on a commitment from Lombard Finance, which then went into receivership. Mr Sanders said there were still some units being offered for sale with an 8 per cent return, which the receivers of Lombard Finance had agreed to underwrite. The liquidation application for Monaco Village Ltd is set to be heard by the High Court at Christchurch on February 15. (The Nelson Mail, Monday 8 February 2010) HOUSE BUYERS CAUTIOUSNelson and Tasman property prices are rising but increasing mortgage rates, unemployment and property tax changes are making buyers cautious, Quotable Value says. The valuation firm’s January statistics, released today, show property values rose 4.4 per cent nationally compared to the same time last year, while Nelson’s went up 3.6 per cent and Tasman’s 4.9 per cent. The average sale price in Tasman was $365,540 and Nelson’s was $340,782, against a national average of $409,807. (The Nelson Mail, Monday 8 February 2010) LARGEST $41.5M DAM TAGGED FOR LEE VALLEYThe committee behind the Lee Valley dam project has expressed preference for the biggest and most expensive dam model, which comes with a price tag of $41.5 million. Three cost scenarios for the dam have been presented to the Waimea water augmentation committee by engineering and environmental consultants Tonkin and Taylor, which recently finished the second stage of a feasibility study. The committee’s preferred model allows $4.2 million for a hydroelectricity generation setup. Tonkin and Taylor consultancy team project manager Sally Marx said the $41.5 million cost would cover the hydroelectricity set-up, land purchase, access replacement, construction, cost of resource consents and ‘‘environmental mitigation’’. ‘‘This includes a 20 per cent contingency. We are not into detail design yet, but still in a feasibility stage so there’s potential for savings.’’ The dam will catch water during high rainfall and release the water back into rivers in dry periods. This will enhance the natural flow of water in the Lee and Waimea rivers during drought and recharge the underground aquifers across the plains. The dam would provide water for an area equivalent to 5850 hectares which includes adjoining irrigable land, current and future urban and industrial water supply, and future regional water demand. Preferred Dam - Will cost $41.5 million - Will irrigate 5850 hectares - Has 13.4 million cubic metres of storage - Has reservoir covering 65.9 hectares - Without the dam, the region will lose $440 million of income over 25 years (The Nelson Mail, Tuesday 9 February 2010) 'BUILD CENTRE ON THE MAITAI'Former Nelson city councillor Seddon Marshall has presented the council with an alternative location for a performing arts and conference centre – over the Maitai River. Mr Marshall spoke to the council in the public forum at a full council meeting yesterday, and suggested the council build the centre over the Maitai River below the footbridge over the river near the Trafalgar Centre. (The Nelson Mail, Friday 12 February 2010) MONACO INVESTORS FEAR FOR MONEYDozens of angry investors and businesses owed money by Monaco Village Ltd are anxiously awaiting the outcome of an application to liquidate the company. Monaco Village Ltd director Scott Sanders told The Nelson Mail on Monday that just a few people who invested in units at the Grand Mercure Nelson Monaco resort were unhappy with plans to pay guaranteed returns over four years instead of two, as first promised. Since then, the Mail has been contacted by investors who were angered by Mr Sander’s comments and his claims that returns are now being paid. The liquidation application was filed by Wellington-based investor Warwick Walbran, who said he knew of 20 unit owners who had not been paid the guaranteed rental by Monaco Village Ltd. Mr Sanders is the sole director of Monaco Village Ltd, which developed the resort. Another company, Monaco Management Ltd, runs the resort and it is directed by Mr Sanders and Clare Davies. Mr Sanders yesterday disputed that lots of investors supported Mr Walbran’s application. ‘‘I’m not sure that’s true – it’s not what I understand.’’ ‘‘There’s a number of investors that have been paid all their guaranteed returns. It’s only when Lombard Finance went into receivership that the problems started.’’ Mr Sanders said he didn’t know what to expect of the liquidation hearing. (The Nelson Mail, Saturday 13 February 2010) TURF GOING BACK TO STOKE FOLKStoke's Turf Hotel has new local owners keen to re-establish its connection with sports teams and the community. Four Nelson investors purchased the hotel from the receivers for CEA Trading last month. Two, Gary Spanjer and Andy Dwyer, have taken over managing the business. They’ve already re-established sponsorship of Stoke rugby and cricket, and are looking at what other clubs they can assist. (The Nelson Mail, Saturday 13 February 2010) PROPERTY WATCHReady for opening The newly built McDonald’s Family Restaurant and Robbies Bar and Bistro in Lower Queen St, Richmond, will open next week. Steve Baigent, a director of Strategic Property Group, which owns the site, said he was ‘‘very pleased’’ with the way the development had come together. Noodle Canteen had leased another part of the site, while a fourth unit was under offer to a national retailer, Mr Baigent said. ‘‘We expect that to be confirmed fairly soon.’’ Two units, which can be combined into one, remain vacant. ‘‘We’ve got interest in that at the moment.’’ A McDonald’s spokeswoman said it would be holding a VIP night next Thursday, followed by a ‘‘soft’’ opening on Friday and an official opening, complete with Maori blessing and powhiri, next Saturday. Early marketing pays off Top-selling Summit agent Gordon Webb has overseen the sale of a 37-hectare Marahau property and three Ruby Bay properties that were subject to a mortgagee tender. He said the Marahau property covered four titles and included a house, two cottages, bush and pasture land. It was the first time it had sold in about 80 years. With a rateable value of $1.1 million, it was signed up within three weeks for $1.08m. ‘‘The pool of buyers is out there, but if you don’t get them in that first marketing period, it can be a long haul,’’ he said. The mortgagee properties – a luxury home at 22 Admirals Way, a vineyard at 112 Pinehill Rd, and another block of land at 115 Marriages Rd – all attracted multiple tenders. The sale prices for those properties are not yet publicly available. Cafe attracts interest Former Seabreeze Takeaways owners Andrew and Maureen Fenemor yesterday took ownership of the Captain’s Cabin Cafe at Port Nelson. Summit Commercial agent Bevan Dixon said small business sales had been slow for more than a year but this one had attracted more than 50 inquiries since he listed it last November. The business was a ‘‘proven performer’’ and well known in the port area, he said. Mr Fenemor said the couple sold Seabreeze in November after 4 1⁄2 years. He stayed on to manage it until just recently. The new venture was a chance to get back to working five days a week, he said. Prices exceed valuations Two large residential properties in Richmond and Stoke sold well above their RVs. A four-bedroom home on 1619 square metres at 275 Nayland Rd with an RV of $525,000 fetched $690,000, while a five-bedroom home on a 6014sq m block at 379 Hill St went for $1.325m in December. It had an RV of $1.225m and was listed for sale at $1.395m. No offers for Playhouse The Playhouse Cafe and Theatre near Mapua has failed to sell through public tender. Colliers International agent Paul Thomas said the property was offered for sale by its owner Rob Moles. Tenders closed last week but none was received. ‘‘We’re reviewing our options,’’ Mr Thomas said. Auctions continuing A two-bedroom property at 31 Oxford St, Richmond, was the only one to sell under the hammer at a Harcourts auction in late January, although two Motueka properties sold afterwards, sales manager Mike Rollo said. The Richmond property has an RV of $265,000 and went for $350,000. Mr Rollo said the Harcourts Nelson office auctioned 80 properties last year, and 78 per cent of those sold during the listing period. Harcourts Richmond auctioned 66 properties in 2009, with 82 per cent selling during the listing period. Hell Pizza reopening Hell Pizza in Tahunanui will reopen within the next few days, after fire damaged a back room in December. Owner Glenn Browne said the repairs took a lot longer than envisaged, forcing the business to remain closed during the busiest months of the year. (The Nelson Mail, Saturday 13 February 2010) THOUGHT FOR THE WEEKOptometrist's office: If you don't see what you're looking for, you've come to the right place. |
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This publication is compiled by Duke & Cooke Ltd, valuation and property specialists. The information contained within this newssheet has been obtained from various local sources and no responsibility is held for any parties relying on the accuracy of this information without obtaining independent verification. To contact us regarding circulation of this service: Phone +64 (03) 5489104, Fax +64 (03) 5468668, or email: admin@valuersnelson.co.nz |