The insolvent developer of 11 blocks of partly-built West Auckland units owes a financier $53.4 million.
That’s according to Neale Jackson and Brendon Gibson’s first receivers’ report on Xianzhen Huang’s Treasure Plus which showed it borrowed that large amount from Vincent Capital and still owed it.
The company used that money to build the 82-unit Dawn Park project at Te Atatū Rd.
High interest rates and rising costs of labour and materials are being cited in the sector as possible reasons for the distressed sale.
That project now stands partly built, covered in protective wrapping while the receivers hunt for buyers.
Advertising indicates the value might be in the land so the 11 blocks could be demolished.
“At the date of receivership, the company owed approximately $53.4m in direct and guaranteed indebtedness to Vincent Capital,” said the report issued yesterday from Calibre Partners.
Treasure Plus is in voluntary administration as well as receivership so Jackson and Gibson said they were also appointed to have control over the assets of Treasure shareholder Xianzhen Huang of Cliff Rd, St Heliers.
Treasure Plus was a property developer, incorporated in late 2014 but when it defaulted on its Vincent Capital loan, the financier had the Calibre men appointed.
Attempts were made to sell units in the 11 blocks, named Dawn Park, while it was under construction but deposits were only taken on 38 units out of the 82, the Calibre report said.
Construction has continued even though the developer is in receivership but Colliers is running a sales campaign, seeking expressions of interest by December 7.
On the plus side of the Treasure Plus balance sheet, it does have some assets in addition to Dawn Park: a townhouse in Orewa and a plot of land in Mission Bay. The value of those assets was commercially sensitive.
After Calibre was appointed, both the townhouse and the land were sold after a mortgagee sale process run via Barfoot & Thompson, the report said. Details of that asset realisation programme would be disclosed in future reports.
In addition to Vincent being owed $53,412,000, the receivers are ascertaining how much is owed to Inland Revenue.
But it does know trade creditors are owed $204,000.
Businesses with security over Treasure Plus include Vincent Capital, Fletcher Distribution of Panmure and Leyi Chen of Riddell Rd, Glendowie.
The sole director of Treasure Plus is Shaohuan Liu of Forrest Hill on Auckland’s North Shore. The receivers said he had provided some of the relevant information requested from him.
The units in adjoining blocks are at three addresses, making up a 7059sq m site, less than 1ha.
Colliers’ Blair Peterken and Josh Coburn are advertising “this semi-complete” complex.
“Take advantage of the market timing, which has seen the residential market rebound and show signs of solid growth in 2024, to acquire and complete this well-located development,” Colliers encourages.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.