Developer brought down by $100m debt

Jamie Peters. Photo / Supplied

Influential property developer Jamie Peters is bankrupt.

The ex-NBR Rich List Aucklander, who is related to Winston Peters and says he has bought and sold real estate worth more than $1 billion, was declared bankrupt in the Auckland High Court after an application was filed by Marac Finance.

Marac was seeking $3 million in outstanding debt.

But yesterday, Peters said a $100 million debt brought him down.

Peters appeared on the Rich List in 2005 with $40 million and in 2006 with $45 million. His Starline Group was involved in large developments around Auckland's CBD, in Wellington and on northern waterfront land.

"I am exposed to personal liability for debts in excess of $100 million as a direct function of the current global credit crisis which I simply do not have the ability to repay," Peters said yesterday.

"This issue has similarly affected other individuals involved in development, as well as large organisations such as my primary funder Bank of Scotland International [BOSI]."

Peters said his largest project was Hobbs Wharf at Gulf Harbour. That project has been stalled this year because of lack of funding.

He still reckons it can work over five or seven years but said he had run out of cash.

"Unfortunately BOSI has advised that it is not currently in a position to approve the application to renew the loan," he said.

Peters developed the $300 million East on Quay office development in Auckland but started his property career buying apartments.

At the beginning of this decade, Starline subsidiary Gulf Corporation paid over $55 million for the development land at Gulf Harbour.

Last last year, the $600 million 20-building Rhubarb Lane project on Cook, Wellesley and Nelson Sts, came unstuck when Westpac called a halt to the funding. The project was to be built by another developer but Peters owned the land.

* Jamie Peters' developments:

Gulf Harbour, Whangaparaoa Peninsula.

Buildings at Quay Park area near old railway station.

Purchase and sale of Finance Centre, Albert St.

Development of 96-unit Sanctum Apartments, Wellington.

Rhubarb Lane planned for his land, never started.