A group of sixty investors who have taken Hutt Valley property firm Waltus Investments to task will have to wait until October 12 to see if the company must buy their respective holdings.
In the High Court at Wellington on Monday, Master Thomson adjourned the hearing, which, if it succeeds, will cost the company $15 million.
The court action follows a Waltus proposal to merge its 27 syndicates into a $227 million company.
Despite pockets of opposition, investors accepted the merger after a series of meetings.
The group taking the action is led by Whangarei accountant Brian Moyle and Auckland financial adviser Murray Weatherston.
Waltus chairman Warwick Hawes reportedly asked that the court action be dealt with urgently, saying any delays would cost investors $200,000 and put the merger at risk. Waltus director Shayne Hodge recently said the merger would mean investors would receive a higher return, with annual dividends recommencing.
The merger comes as the property market is weak, rents are falling and shorter leases are creating problems for property companies such as Waltus.
The merged company will have assets totalling $227 million, with $91 million of debt.
Waltus manages about $450 million of property in New Zealand and $130 million in Australia, where it wants to make greater inroads. Shares in Waltus, set up in 1985 to manage commercial, industrial and retail properties here and in Australia, are traded on the secondary, or grey, market.
- NZPA
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