Blue Chip trial begins

The Barclay Apartments on Albert Street, Auckland were part of the Blue Chip investment scheme. Photo/Dean Purcell

The hopes of around 250 Blue Chip victims are riding on a six-week High Court hearing, which began today.

Barrister Paul Dale has brought before the court 34 representative cases of investors who lost money when the property investment scheme collapsed last year.

The investors borrowed against their homes to put funds into unusual agreements called `joint ventures' and `PIPs'. These agreements invested in yet-to-be built downtown Auckland apartment buildings.

Now the buildings are complete and the developers are demanding that the investors - mostly retirees on extremely low incomes - purchase the apartments.

The investors want the developers to accept cancellation of the agreements on various grounds, including that they were "unconscionable", and to return their initial deposits which are held in solicitors' trust accounts.