Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Todd Property buys Pegasus town development from receivers

Todd Property buys Pegasus town development out of receivership

By Paul McBeth

Dec. 4 (BusinessDesk) - Todd Property Group, the property development arm of the country's wealthiest family, has bought the beleaguered Pegasus Town development in North Canterbury out of receivership.

The property unit said it expects to complete the Pegasus development in 2015, without disclosing how much it paid. The acquisition is Todd Property's first in the South Island, and represents its confidence in Christchurch's residential market, the company said.

"We recognise the need for quality residential housing options in and around Christchurch and expect there will be strong demand for new homes in Pegasus," managing director Evan Davies said in a statement. "The Pegasus development is a highly attractive offering close to the city, which presents residents with a unique lifestyle in a truly desirable setting."

Pegasus Town was tipped into receivership in August when it defaulted on loan payments and wasn't able to reach an agreement with its lender to continue. The development owed NZ Property Finance Partners $142.8 million, according to the last receivers' report.

The secured lender is a joint venture between Goldman Sachs and Brookfield Asset Management, which bought the debt at a discount last year from Bank of Scotland International as part of a $1.3 billion portfolio in New Zealand.

The Pegasus Town development was the brainchild of Infinity Investment Group's Bob Robertson to build a township within driving distance of Christchurch for 7,000 residents. BOSI came on board in 2005, providing a funding line of $107 million for the first development stage and a further $151 million for the second stage.

Last month, Todd Property bought 28 hectares of land north of Wellington, which it plans to develop into 189 sections and two commercial lots, including a New World supermarket.

According to its website, the company holds a three-quarter stake in the Kapiti Landing development, which includes the Paraparaumu Airport, and has developments in Auckland's Stonefields, Long Bay on the North Shore and Okura, Ngunuru north of Whangarei and the former Napier Hospital site.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news