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


Brookfield Multiplex quits NZ citing lack of projects

Brookfield Multiplex cites lack of projects in liquidation of NZ unit

By Jonathan Underhill

Jan. 8 (BusinessDesk) – Brookfield Multiplex, the Australian firm whose New Zealand developments included the Sylvia Park Shopping Centre and the Pegasus Town development, says a lack of new projects in a tough market drove the decision to liquidate its local unit.

Brookfield Multiplex Constructions (NZ) appointed liquidators on Dec. 4 though it had largely ceased operating in 2011, when it made most of its workers redundant. It has a shortfall to unsecured creditors estimated at $2.4 million, according to liquidators Anthony McCullagh and Stephen Lawrence of PKF Corporate Recovery & Insolvency (Auckland). Realisable assets were estimated at $44,279, though with some items including retentions listed as unknown.

“A continued lack of opportunities in the market prevents Brookfield Multiplex from maintaining a presence [in New Zealand] in its traditional form,” the directors said, according to the liquidators’ report of last month. “This follows on from nearly two years operating without an active project in a highly competitive market, as well as receiving on-going financial support from its parent company.”

The Sydney-based parent withdrew that financial support on Dec. 3, forcing the local unit to cease trading.

Brookfield Multiplex Constructions (NZ) had a loss of $4.4 million in calendar 2010, the last year it provided results to the Companies Office. That’s down from a loss of about $39 million in the previous year. Construction revenue was about $37 million in 2010.

The liquidators’ report says the company faces as-yet unquantified claims on construction contracts including Spencer on Byron, Nautilus Apartments, Century on Anzac, Victoria Apartments and Sylvia Park.

Brookfield Multiplex was formed in 2007 when Canada’s Brookfield Asset Management acquired Australian developer Multiplex, whose projects included the troubled Wembley Stadium development, for about A$7.3 billion including debt. It still has nine companies registered in New Zealand that aren’t in liquidation, including Brookfield Funds Management, part of a global asset management business overseeing some US$150 billion of assets.

A spokeswoman for Brookfield Multiplex in Sydney didn’t immediately return calls.

The New Zealand company sold its 50 percent stake in Pegasus Town Ltd to partner Infinity Investment Group in 2010 for $1 million, having taken a $34 million impairment the previous year.

Pegasus Town went into receivership last August, owing some $142.8 million to a joint venture between Goldman Sachs and Brookfield Asset Management, which bought the debt at a discount in 2011 from Bank of Scotland International as part of a $1.3 billion portfolio in New Zealand. The development was acquired from the receivers by Todd Property last month.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news