The Property Developers is an original, non-scripted reality series that offers a unique perspective into the journey of building a billion dollar property and lifestyle business.
An investor who put hundreds of thousands of dollars into Du Val Capital Partners three years ago says he is losing money and concerned after the company was placed in interim receivership last week.
“I got 10% for nearly two years,” said the man who is one of the120 people cited by Te Mana Tātai Hokohoko Financial Markets Authority when it had the Du Val businesses put into PwC’s insolvency experts’ control.
“Now, I am haemorrhaging way too much money,” the investor said of lack of returns. “It’s been nearly two years since I’ve been paid anything.”
Attempts to seek comments from Du Val chief executive Charlotte Clarke, husband Kenyon and others at the business about the interim receivership resulted in no response this week.
But the group was “technically insolvent” last September. In February this year, it was offering 200 million $2 shares to convert lenders’ debt from investors in its mortgage and build-to-rent (BTR) funds to equity in a restructured Du Val Property Group.
The investor told the Herald he simply wanted to retrieve his money but was unable to.
He was offered the opportunity to get 1.5 per cent but stressed to Du Val he wanted all his money back.
He said he also bought two Auckland apartments in developments by Du Val, contributing a further $100,000-plus in deposits and taking on mortgages on those places which he now wants to sell.
“I don’t want the company wound up. I want it to try to trade its way out of this so people can be repaid,” he said.
Kenyon and Charlotte Clarke on set of their new reality show The Property Developers.
A statement from the FMA said interim receivers were generally appointed to seek clarity around the financial position of a company or group of companies.
The FMA said it had taken five separate enforcement actions against Du Val since 2021. It lists those on its website as:
October 2021: FMA tells Du Val to remove advertising materials likely to mislead or deceive investors. Statements by its Du Val Mortgage Fund Limited Partnership contravened fair dealing provisions by creating the impression that investing in financial products connected to property development was low risk. “Property development, including associated finance, is inherently risky,” the FMA said then. Kenyon Clarke told the Herald his business raised $20m via a mortgage offer to wholesale investors and no one had complained.
July 2022: Du Val appealed that action but the High Court upheld an FMA direction order.
October 2022: FMA conducted a review of wholesale investments into property-related offers after rising complaints and concerns about such offers, how they were promoted and whether non-wholesale investors were being targeted and their money accepted.
March 2023: FMA warned Du Val Capital Partners, the general partner of the Du Val Mortgage Fund Limited Partnership and Du Val Group for misleading or deceptive statements to investors in the mortgage fund.
August, 2024: FMA has the High Court put Du Val and associated entities into interim receivership.
Police going into the Du Val owners' property in Remuera on August 2.
Photo / Alex Burton
Du Val has been called New Zealand’s biggest apartment developer and was referred to as “a billion-dollar property and lifestyle business” in the never-screened series The Property Developers.
Developer Kenyon Clarke of Du Val.
The business said it has offices in Auckland and London, had delivered high quality affordable developments since 2013, had more than 60 staff, had “settled” 774 Auckland homes in the past six years and had a further 278 homes under construction.
“Du Val is driven by our passion for inspiring people to build secure financial futures for the next generation through home ownership, investment, and wealth creation.
“We take pride in delivering exceptional value to support our clients’ aspirations,” it said.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
