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A property investor with Auckland apartments developed and managed by Du Val has been reassured he will still receive rent after Te Mana Tātai Hokohoko the Financial Markets Authority’s action against the company and its founders on Friday.
The landlord has places in Manukau’s 151-unit high-rise Lakewood Plaza andsaid Du Val had been in touch to reassure him.
He contacted the Herald to express his concern after the FMA got a High Court ruling putting 64 Du Val businesses into interim receivership.
Questions about the rent were put to Du Val chairman John Dalzell, chief executive Charlotte Clarke and directors Kenyon Clarke and Owen Culliney yesterday but no reply has been received.
FMA officers going into Du Val owner's property in Remuera. Photo / Alex Burton
The landlord said Du Val contacted him yesterday to reassure him after he expressed concern.
“As you would have heard in the media, numerous Du Val entities were placed into interim receivership on Friday. We would like to assure you that the building facilities and property management team still remains operational and is still managing your property to a high standard. Rent will continue to be receipted into the trust account and disbursed mid and end of month respectively. If you were originally only paid end of month, you will now be paid bi-monthly,” the landlord was told.
If there were to be any change in circumstances, he would be notified.
Du Val not only developed the apartments but one of its many entities managed them, collecting the rent for investors and paying it to them.
He was unable to employ any other property manager on his Lakewood Plaza places, he said.
“It is compulsory for Du Val to manage our units. Third-party managers are not allowed. I’m now concerned,” he said.
Kenyon and Charlotte Clarke of Du Val.
About 500 people live in the highrise, which in 2021 was evacuated after a water main burst on level 11.
Some residents remained out of the new block days after Fire and Emergency New Zealand attended.
Units were flooded but Du Val said in a statement the building was covered by body corporate insurance, which covered the loss of rent.
The block was developed about four years ago by Kenyon and Charlotte Clarke’s Du Val Group in a joint venture with builder Downey.
Charlotte Clarke said in 2021 the building facilities management company was Du Val Portfolio Management. The Companies Office shows no company registered under that name.
Damage from the water was limited to a few apartments on the northern end of levels nine to 11, she said then.
The rest of the building was largely unaffected.
Police officers going into Du Val owners' property in Remuera on Friday.
Photo / Alex Burton
Du Val said the project was one of the first in this country to offer “dual-key titles” that enable investors to maximise rental income by giving more than one person access to rent it, providing premium facilities and flexibility in terms of occupancy.
Wholesale Du Val investors have also contacted the Herald. One person with money in a mortgage fund said he was getting no returns and was concerned about his capital and what would happen under the interim receivership.
On Friday, the FMA had John Fisk, Stephen White and Lara Bennett appointed interim receivers, also getting interim receivership orders against the Clarkes.
The court also approved the FMA’s request for asset preservation orders over the Du Val businesses.
These are sometimes referred to as freezing orders.
On the Du Val case, the FMA said: “Interim receivers are generally appointed to seek clarity around the financial position of a company or group of companies. The court also approved the FMA’s request for asset preservation orders. The orders were requested to support the FMA’s active investigation into Du Val Group”.
PwC’s John Fisk has not commented on the Du Val situation or what happens to landlords’ rent paid to Du Val businesses.
Du Val investors with questions about the interim receivership process should contact PwC New Zealand nz_duval@pwc.com, according to Friday’s statement.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
