Maori to sell prime land

A leasehold subdivision of up to 100 sections should help to put a financially troubled Far North Maori group on a sound footing.

The Matauri X incorporation, which owns 500ha of land on behalf of 430 shareholders, has voted to subdivide 10ha to repay a $4.5 million debt with finance company Bridgecorp.

Matauri X bought into mineral water company Eternal Springs in 2001 after borrowing $2.5 million without the approval of shareholders.

The venture failed, and the trust now faces the prospect of having to sell some, or all, of its tribal block of prime coastal land at Matauri Bay to repay the debt.

The Maori Land Court is investigating the affairs of Matauri X's management committee over the deal.

The court-appointed administrator of Matauri X, Kevin Gillespie, said Baylys Real Estate would market the subdivision, which would be back from the beach at Matauri Bay.

The subdivision would include 70 to 100 sections of about 800sq m each on leases of up to 100 years.

Mr Gillespie said the sale of the sections should put Matauri X on a sound financial footing.

Resource consent applications for the subdivision could be lodged with the Far North District Council by Christmas.

Te Tai Tokerau MP Dover Samuels, the single largest shareholder in Matauri X, hoped the subdivision would also pay for a comprehensive development programme for the group.

The Court of Appeal this week heard an application from Matauri X to overturn a High Court ruling that the mortgage from Bridgecorp was valid, and that the group had to repay it.

Matauri X had earlier unsuccessfully argued in the High Court that the loan should be declared invalid because it was taken out without the consent of shareholders.

The three judges hearing the appeal are expected to release their decision next month.

The loan has left Matauri X facing a weekly interest bill of $4000.

- NZPA

* CORRECTION: In the original version of this report we stated incorrectly that Matauri X incorporation had reached agreement with the company behind the Mataka Station development - a substantial coastal property incorporating a 1000ha farm in the Bay of Islands - to develop the subdivision.