KEY POINTS:
The developers of a 157-unit Auckland apartment complex have been trying to pressure victims of the Blue Chip collapse into signing over their deposits.
Bianco off Queen, near the top of Queen St, is being developed by the interests of property developer Tim Manning, known for his association
with leaky home developments. It is due for completion in October.
However dozens of the short-stay apartments were sold through Blue Chip, to investors who have no ability to stump up the funds.
The investors put 10 per cent deposits on the future apartments, on the understanding that Blue Chip would buy the units when they were finished and pay the investors for the use of their money in the interim.
The collapse of the property investment scheme has left the investors liable for completing the sale and purchase agreements. They are challenging the contracts through their lawyers.
Last week retired Hamilton couple Joan and Nelson Blake were approached by consultant Andrew Shepherd who described himself as "client liaison" for the Manning company Turn & Wave Limited. Shepherd asked if they would sign over their $68,700 deposit - currently held in trust - to the developer who would then seek an alternative buyer in Asia.
The couple said he told them that if the property was onsold for a good price they would be free of the agreement, and lose only their deposit.
"And in the next breath he said 'but it's not 100 per cent, there's no guarantee'," 69-year-old Joan Blake said.
The Blakes took out a $141,000 mortgage on their $300,000 home to invest in Blue Chip. They are in no position to settle on the $477,000 Bianco apartment.
Despite being pensioners they gained a no-doc loan through Tasman Mortgages, owned by Blue Chip at the time. Like many others, their occupation was noted as "self-employed", enabling the no-doc loan to go through.
Joan Blake said the couple did not write that on the form themselves.
"Papers had definitely been altered, because we always say we're retired."
The couple have refused the developers' offer to sign over their deposit. When they gave Shepherd their answer, he told them they would be worse off and had no hope of getting their deposit back, Joan Blake said.
Linda Britton, who is co-ordinating a group of Blue Chip Bianco investors, said the developers had "done the rounds". Britton believed the developers were feeling financial pressure as the completion date neared: "Why would they be ... offering these sort of deals if they're not feeling a bit nervous?"
She said Ellis Law, who is acting for the investors, had advised them to turn down the deals.
Manning is known for his association with leaky home developments. In February, owners of one of them - the 153-unit Sacramento development in Botany Downs - received a $11 million settlement in the largest weathertightness case to date.