Debts of the failed Auckland Du Val development business were sliced from $306 million to $267m as assets were gradually sold this year by the Government-appointed accountants charged with running the business.
Statutory managers PwC today issued the latest six-monthly update on the financial state of the 70 businesses from February 21 to August 20 this year.
The biggest success in the half-year was reducing amounts owed to secured creditors from $224m to $185m.
PwC cited repayments made from the proceeds of selling properties for its victory.
Investors in the Build to Rent Fund could get 40c to 44c in the dollar, although the exact figure is yet to be decided, PwC said.
China Construction Bank (New Zealand) had loaned $18.1m to that Built to Rent Fund and that has now been fully repaid.
Six Du Val entities owned land and residential property developments at various stages of completion when PwC was appointed last August, so it has contractors finishing those schemes and selling units within them.
In the latest period, it has sold Du Val’s properties in Māngere Bridge’s McKenzie Rd and Māngere East’s May Rd. It got 10 offers via a process run by CBRE. That brought in $23.2m, the report said.
At Mountain Vista Estates, 35-37 Walmsley Road, Māngere, PwC worked with the sales and marketing team to achieve a number of settlements.
Completion of that big housing project is expected early next year.
Construction of all units in Te Awa Terraces, Māngere East was finished in December and January. PwC made a number of settlements or negotiations with buyers who had struck pre-sale agreements.
But Mt Wellington’s unfinished Verge Apartments scheme remains unsold after Colliers ran a campaign. Negotiations were ongoing with a preferred buyer, in consultation with a first-ranking secured lender. PwC said it understood work on building the twin-block complex stopped in 2023.
Manukau’s high-rise Lakewood Plaza apartments continued to undergo substantial remedial works after water damage before PwC was appointed. A Du Val business PwC is running owns two commercial units: an office and the gym within that building.
PwC charged $1.4m in fees for the six months, which was the cost of its time and expenses as well as a further $650,000 in legal fees.
PwC was last year put in charge of reviewing historical financial statements issued or prepared by the Du Val Group and more recent financial accounting records.
On August 2 last year, John Fisk, Stephen White and Lara Bennett were appointed as joint and several receivers and managers of the individuals, companies and limited partnerships.
At the time Du Val owed more than $300m, with Charlotte and Kenyon Clarke in receivership with a preservation order placed on their assets.
How jewellery, artwork and firearms in the Clarkes’ possession were paid for was a focus of PwC accountants untangling the Du Val Group situation, court documents say.
A March 7 affidavit of PwC’s John Fisk delved into that.
The Financial Markets Authority (FMA) obtained the interim order last August and is investigating the Du Val Group for potential breaches of financial markets legislation.
Via senior criminal lawyer Ron Mansfield, KC, the couple fought back at a hearing in June but the court has agreed with the FMA.
On July 21, Justice Anderson in the High Court at Auckland extended asset freezing orders and passport retention.
The decision also upheld the receivership and the overseas travel ban placed on the couple.
BusinessDesk reported last month on Du Val’s escalating legal actions.
It has been a tumultuous year since the collapse of the Du Val property development group, which has also seen a failed bid to blame the FMA and numerous furious social media posts saying no charges had been laid.
The couple have been vocal about the lack of prosecution, with last month marking the first anniversary of the raids on their home and businesses.
“Now, one year later, we are still stuck in this unacceptable holding position,” the couple said.
On April 2 this year, PwC issued its first six-monthly update for Karapiro Corporate Trustees, Du Val IP Holdings, Du Val Prop Tech, Coastway (formerly Du Val Wealth) and Du Val Connect Limited Partnership.
The report indicated an unclear situation.
“As the financial records of the group are incomplete, investigations and analysis to identify whether further assets may be recoverable are ongoing,” that said.
“Our enquiries are ongoing and we are not yet in a position to advise what, if any, amounts will be available for payment to creditors,” PwC said in April.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.