One of New Zealand's richest landowners, Tappenden Holdings, has bought a slice of residential Auckland waterfront land from a church organisation.
Tappenden bought the freehold to 13 Kohimaramara residential sections thought to be worth at least $20 million.
All the sections have houses on them and the land
is leased long-term to residents.
The Melanesian Mission Trust Board sold the sections to Tappenden for an undisclosed amount. Tappenden's owners include multimillionaire Trevor Farmer, who has appeared in the NBR Rich List as having a personal fortune of $250 million.
The church is easing out of ownership in the eastern suburbs, and a spokesman said it had offered 41 sections for sale in the Kohimaramara area.
Residents in Speight Rd, Melanesia Rd, Kohimaramara Rd and Sage Rd received letters this month saying the board had sold land to Tappenden.
The 41 sections put up for sale are thought to be worth at least $40 million.
Letters from the board to residents said settlement of the deal with Tappenden was on March 14. Residents were referred to Tappenden's lawyer, Mark Crosbie at Bell Gully, if they had any inquiries about the sales.
Leaseholders had the first option to buy their properties. But many have lived on the land for decades and are retired and unable to afford to freehold their properties.
A church board spokesman said yesterday that of the 41 sections for sale, Tappenden had bought 13 and residents had bought seven.
The board still owns 21 sections and is yet to decide what to do with them, he said.
Some residents pay $30,000 to $90,000 in annual leases, and have quit the area because they can no longer afford the high cost.
Valuations on many of the waterfront sections are $2 million or more. One block back, sections are valued at around $1 million. The ground rent is assessed at 5 per cent of the valuation of the land.
In 1999, the Melanesian Mission Trust Board and the St John's College Trust Board put 260 leasehold properties in Mission Bay, Kohimarama and St Johns up for sale.
Two years ago, residents living around Cornwall Park in Auckland were faced with proposed rent increases of up to 750 per cent.
The Cornwall Park Trust Board reviewed ground rents on 27 of its 119 properties around the Campbell Rd and Maungakiekie Ave area which backs on to the park. Residents who were paying about $4000 a year in rent are now paying up to $40,000.
