As indicated previously, this scheme’s property is not owned by a company to which we have been appointed as Receivers and Managers. Accordingly the sales processes are not being undertaken by us. Rather, they are being undertaken by the New Zealand liquidators.
This property was a retail/office building located in Christchurch that was only in the early stages of construction. The shopping centre which formed the primary asset of this scheme was sold prior to our appointment as Receivers and Managers.
An auction of the property was held on 14 December 2010 by Colliers International. A sale price of NZD1.1million was achieved. This was substantially less than the initial amounts indicated by the valuers/sales agents prior to the September 2010 earthquake. While the property was not damaged by this earthquake, it is likely to have impacted the value achieved from the sale. Approval of the Court is not required for this sale.
Prior to settlement of the sale Christchurch experienced a second earthquake on 22 February 2011. By agreement the Liquidator and purchaser deferred settlement until the extent of the damage is known.
The Receivers have recently received an update from the New Zealand Liquidator regarding the sale of the Moorhouse Shopping Centre in Christchurch. The purchaser of the property and the Liquidator are making progress in resolving the issues prior to achieving settlement.
The Liquidator is hopeful settlement of the sale will occur in the coming months.
Should settlement occur, based on the contracted purchase price, it is expected that there will be sufficient funds to allow for a distribution by the New Zealand company to its unsecured creditors, including LGH Administration Pty Ltd (Receivers and Managers Appointed) (In Liquidation). The quantum of the dividend and the amount that will be available to the Investor Common Fund, if any, will not be known until shortly prior to any distribution.