ANZ National Bank is seeking to recover $25.2
million from the sale of bankrupt Wellington property developer Terry
Serepisos' former headquarters.
Receivers for Century City
Investments, Barry Jordan and David Vance, who were appointed by the
bank, have put ASB Bank Tower up for sale in a public tender.
The
building was valued at $34.2 million in 2009, though the receivers have
withheld an independent valuation report they commissioned since they
were appointed on September 30.
"If a satisfactory sale cannot be
achieved, the receivers will discuss with ANZ National other options
which may include updating the tenancy profile and completing the
deferred maintenances and capital works before repeating the sale
process later in 2012," the receivers said in their first report.
The
receivership followed Serepisos' bankruptcy in October, when he failed
to convince the High Court in Wellington to give him more time to try to
secure new funding from a Hong Kong-based investment bank. He owed $204
million to his lenders.
The receivers said the Century City unit
had been in financial difficulty for at least two years, and due to loan
defaults, had entered into a "lockbox' arrangement where CB Richard
Ellis was responsible for collecting rental income and paying all
expenses relating to the building's operation. Surplus funds were
transferred into a bank account nominated by ANZ National.
The
bank holds a first mortgage over the building, and the first ranked
creditor. Allied Farmers Investments, the vehicle which absorbed the
toxic Hanover Finance loan book, held a second mortgage over the
property and is owed $4.3 million.
NZN