Blue Chip's tangled web. Photo / Herald Graphic
Harcourts has set up a major operation to help investors hit by the Blue Chip structured property investment scheme.
The real estate agency says it is being swamped by investors who want Harcourts to take over management of their properties, and it has set up a special team
to deal with them.
As insolvency experts start the process of unravelling the web of 19 Blue Chip-related companies that have gone into liquidation, thousands of investors are struggling to figure out where they stand.
While many are owed thousands in rent, liquidator Jeff Meltzer said yesterday those who had paid deposits on apartments and townhouses not yet built could be in the worst position.
Also yesterday, the Australian-listed entity Blue Chip Financial Solutions (Ltd) was suspended indefinitely from the Australia Stock Exchange at the request of the company.
Last month, Blue Chip subsidiary Bribanc Property Group Ltd announced it had subcontracted the management of an estimated 1100 Auckland properties to Harcourts. However, the rent was still to be paid directly to Bribanc, which was of little comfort to investors awaiting weeks of rent payments.
Harcourts CEO Bryan Thompson said the agency was continuing to manage properties on behalf of Bribanc, but now that Bribanc was in liquidation it was "certainly making sure the money is going exactly where it's supposed to go".
In addition, it was managing properties directly for individual investors who had terminated their contracts with Blue Chip-associated companies.
Mr Thompson said the agency had written to every investor who owned a property previously managed by Bribanc and had set up a full team to discuss options with them as they made contact.
"The response from investors has been overwhelming," he said.
"They've been very appreciative of what the team's been doing for them."
Click here to see a diagram of Blue Chip's structure