Rich-lister in row over luxury golf course

William Birnie

A luxury golf course development is at the heart of a $19 million shareholder scrap between rich-lister William Birnie and fellow investors.

Birnie's lawyers were in the High Court at Auckland yesterday defending a case against Birnie Capital Property Partnership (BCPP) brought by shareholders Allen Peters and Harawira Gardiner (also directors) over the company's investment in various property deals.

The civil suit mainly centres on the sale and purchase agreements of the Lion Rock Golf Course and associated company Lion Rock Developments. Birnie is supported by respondents Stephen Norrie and Richard Hoare, who together own a 48 per cent share of BCPP.

Peters and Gardiner, represented by Paul Quinn, who is an alternate director of Ngati Awa Asset Holdings, allege BCPP suffered losses of $19 million due to investments in these companies.

Peters' company Peters Capital has a 7.5 per cent share in BCPP and Gardiner's company Ngati Awa Asset Holdings has a 10.5 per cent share. The Lion Rock Golf Course is solely owed by BCPP.

The case yesterday started in open court but was later changed to a chambers hearing due to sensitive information that was disclosed.

Justice Raynor Asher later opened the court but all details were placed under an interim suppression order.

The plaintiffs' lawyer Zane Kennedy did not support the suppression of yesterday's hearing but did not oppose it either.

Birnie, a former Fay Richwhite executive, is worth $100 million, according to the National Business Review Rich List for 2009.

Today Justice Asher will hear submissions from Birnie's lawyer Michael Reed, QC, on whether these suppressions should remain permanent.

BNZ has been revealed as a secured creditor in the case.

Further details of its involvement were discussed yesterday but have been suppressed.

The golf course and resort is to be built over 140 hectares on the Purerua Peninsula in the Bay of Islands.

It will be next to the Kauri Cliffs Golf Course.

Acclaimed golf designer Robert James II has designed initial plans for the development that will include an 18-hole golf course, clubrooms, luxury accommodation, a day spa, a winery and 30 residential lots.

The resort gained planning consent last year.

Building is set to begin at the end of this year and finished by 2013.