Apprentice boss in cash crisis - Terry Serepisos

[spurner]

Serepisos gets more time

Serepisos gets more time

Wellington property tycoon Terry Serepisos has been given another two weeks to pay money owed to frozen lender Canterbury Mortgage Trust.

In the High Court at Christchurch yesterday, FM Custodians, acting on behalf of the trust, appeared seeking a summary judgment against Mr Serepisos' companies Century City and New Millenium Design.

FM Custodians lawyer Stephen Caradus asked that the matter be adjourned till October 18 to allow the parties more time to resolve the matter.

The trust has two first-ranking mortgages against Wellington commercial buildings owned by Mr Serepisos, including the Century City Hotel in Tory St.

Both companies are in default on repayments to the trust and Mr Serepisos has faced ongoing pressure from other creditors, which have included Wellington City Council and ACC.

A spokesman for Mr Serepisos has previously claimed the dispute with the trust had already been settled and would not go to court.

Last week, Mr Serepisos averted a bid by ACC to liquidate the Wellington Phoenix football club over $261,000 in outstanding ACC player levies.

Canterbury Mortgage Trust had presented itself as a conservative lender but had lent on risky property deals. In July 2008, the trust froze its $251 million fund, which it was still trying to wind up to repay investors.

In the same court, the trust yesterday also took over from Gold Band Finance in a petition to bankrupt property developer David Henderson. Gold Band dropped its petition because Henderson had begun repaying money owed.

The trust claims it is owed $14.5m by Mr Henderson and last year obtained a judgment for more than $11 million. Mr Henderson has previously opposed Canterbury Mortgage Trust joining the bankruptcy bid, claiming the sum owed was still in dispute. The matter has been adjourned to October 18.

In June the trust appointed receivers to Henderson company Livingspace Properties, which owns LivingSpace apartment businesses in Christchurch, Dunedin and Invercargill.

A receivers' report shows the company owes the trust $11.79m.

http://www.stuff.co.nz/dominion-post...gets-more-time

[WGN ex-property manager]

So.. is he going under?

Cash (flow) is king, and Duke Terry seems to be overdue a Royal visit!

Wellington CBD apartment prices are already a bit wobbly because of Soho... if he gets liquidated this could get messy (or cheap enough for me to actually consider an apartment as a IP)

[CJ]

BMW disappoints Apprentice winner
JULIE JACOBSON - The Dominion Post
Last updated 05:00 08/11/2010

He won a high-paying job, a home in Roseneath, and a BMW – but reality television show The Apprentice NZ winner Thomas Ben says his new car isn't as flash as he was led to believe.

Four months into his job with property tycoon Terry Serepisos, Mr Ben, 35, has told The Dominion Post he is disappointed that the BMW he has been given as part of his prize package is a somewhat lesser beast than was promised.

He described the 320D touring model he got in Wellington as "a really low model" – even though prices start from $68,900 – $1000 more than the 320D sedan he drove after the TV show in Auckland.

Mr Ben, speaking for the first time about the 12-month employment contract he has with Mr Serepisos' Century City, said that though he loved his new job and was hoping to stay on after the contract ended, there had been problems over the car.

He said that after being announced the winner of the show, he was given a 320D sedan, equipped with all mod cons, including a touch-screen computer navigation system, and was told he would get "a brand new one" when he got to Wellington.

"The car they [BMW] gave me after the show was a really nice black high-spec 3-series, so I thought 'cool, fantastic'. I was really excited. Then we get down here and they gave me just a really low model – like a Camry wagon but a BMW.

"There's no equipment in it, nothing. It was a bit of a step down, to be honest."

He approached BMW, who told him the one-year-lease as part of the show's $200,000 prize package was for a new 320D – which is what he had.

"They said our contract with the production company only states a 320D – not the spec, but, if I wanted to do a photo shoot they would lend me the gear."

His complaint was with BMW, not Mr Serepisos or the production company, he said.

Rumours that he was living in a leaky home in Wellington, rather than the prescribed luxury accommodation, were "rubbish".

His family had the run of one of Mr Serepisos' Roseneath properties, a five-bedroom, two-bathroom home in Robieson St. "It's big, it's very, very nice and the family loves it."

Though his contract with Century City was for a year, Mr Ben said he planned to stay on – "if Terry will have me" – for another year or so, to build his profile.

http://www.stuff.co.nz/entertainment/tv/4318028/BMW-disappoints-Apprentice-winner

I am not sure why he is upset with BMW - they have provided exactly what TVNZ paid for.

[donna]

Yeah bummer getting a $68K car -

Cheers,

Donna

[whitt]

So whats his actual issue?
He drove a nice car for the show but once he won got a basic model which was exactly as specified in TVNZ contract.

Apprentice lesson #12
Read contracts and don't assume!!!

Imagine making the same mistake at work?
What if a kitchen company had XXX spec for new kitchens. Sign them up to do a big contract, which they do exactly as per contract.
However once kitchens are complete realise you forgot to specify the Spec and they built basic ones.

Apprentice lesson #13
Attention to detail

[CJ]

So whats his actual issue?
He drove a nice car for the show but once he won got a basic model which was exactly as specified in TVNZ contract.

Apprentice lesson #12
Read contracts and don't assume!!!

Imagine making the same mistake at work?
What if a kitchen company had XXX spec for new kitchens. Sign them up to do a big contract, which they do exactly as per contract.
However once kitchens are complete realise you forgot to specify the Spec and they built basic ones.

Apprentice lesson #13
Attention to detail

Classic bait and switch. I am sure the display suites are finished to a higher standard than the actual apartments they sell (speced per the contract).

[whitt]

Yep.
Seems the new boy may have got duped by one of the oldest tricks in the book.

Apprentice lesson #14
Careful around media, they will print anything just as they did this time around.
An Innocent comment in public about something confidential can quickly be in the newspapers and your future career looks shaky.
This time around it was only about a car , what if next time it was a project or the boss??

[spurner]

Serepisos' financial woes worry fans

Serepisos' financial woes worry fans

Phoenix fans are anxious Terry Serepisos' financial woes will only impact further on the struggling side's on-pitch performance.

Fans have taken to the Yellow Fever support club's online forums to express their distress after it was revealed owner Serepisos owes more that $3.5m to the tax department.

The IRD has filed court action to liquidate five of Serepisos' companies - including Century City Football, owner of the Phoenix.

Mike Greene, a spokesman for Yellow Fever, said today the controversy may affect the players, but he hoped it would have the opposite affect.

"They're probably not at the top of their game at the moment so it might spur them on to give a better performance."

The Phoenix are currently seventh in the A-League.

Greene said all fans could do was to keep supporting the team and keep supporting the players "come what may".

"Being an owner in this league isn't the easiest task. Several other teams have had to have bail outs. Good on Terry for taking up the challenge and persevering," Greene said.

Fans on the forum - some angry at Serepisos - were convinced the troubles would affect the team's performance.

"Obviously short term this will cause a lot of stress to players and fans," a user called Tunnelvision said.

"How can it not have an impact? If it was your employer who was going through financial troubles would it play on your mind, just a little? Of course it would!" theprof said.

The largest sum – more than $1.5m – is owed by Century City Football for PAYE tax deductions, GST and KiwiSaver contributions.

Four other companies from the Century City group owe between $400,000 and $804,000 each, according to court papers filed by Inland Revenue.

The department served statutory demands on the companies in late September requiring payment within 15 days and warning that if this was not made it would apply for liquidation.

Formal proceedings to apply for liquidation were filed with the High Court on October 20 and the application will be heard on December 13.

Serepisos acknowledged yesterday that he had a tax liability but expected it to be resolved in the next few weeks.

A written statement said Century City had been in discussions with IRD "for some time" about a tax liability.

"An arrangement is in place between Century City and Inland Revenue to address the matter before the end of the year.

"Notwithstanding this arrangement, Inland Revenue is following normal legal procedure in regards to this liability and Century City is confident the matter will be resolved to the satisfaction of both parties in the coming weeks."

A spokesman for Inland Revenue declined to comment on the proceedings against Serepisos' companies, saying "we can't comment on individual taxpayers affairs".

Serepisos has extensive property holdings in Wellington, including the Century City Hotel and apartments in Tory St, and the ASB and Todd Towers in Hunter St.

An economic impact study showed the Phoenix's 11 home games last season contributed $7.9 million to the local economy and generated the equivalent of 68 fulltime jobs in the region.
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Financial woes have troubled Serepisos this year.

In September, ACC moved to liquidate the football team for $261,000 in outstanding payments. Both Wellington and Hutt city councils have substantial outstanding rates claims against properties owned by Serepisos.

Last month he reached an out-of-court deal to settle $8.95 million owed to Canterbury Mortgage Trust. The trust claimed the money was owed by two of his companies, Century City and New Millennium Design, for two loans secured against Wellington commercial buildings.

An expert in company receiverships said liquidation usually meant the end of a company.

With the appointment of a liquidator, companies' assets were sold to pay debts. Wages and holiday pay for employees had first call on any money. Tax debts also had priority and others with securities, such as mortgages, followed.

NZ Football chairman Frank van Hattum said he knew nothing of the IRD claims and did not want to speculate. "It's not our business, it's Terry's ... [but] anything that affects the Phoenix as an organisation going forward is a worry."

A Wellington City Council spokesman, Richard MacLean, said the council was "very concerned" over the future of the Phoenix but was unlikely to contribute ratepayers' money. "We are not in the business of owning a football club."

He would not confirm whether the council had a contingency plan to help the Phoenix, or whether it would facilitate negotiations to find a new owner, should that become necessary.

Council sports portfolio leader John Morrison said the loss of the Phoenix would have a massive impact on the city.

"The whole impact of football and what that brings to the city is obviously in jeopardy. That is of huge concern. Exactly what we do about it, I'm not sure. We [the council] can't be seen to be taking over or propping up football teams.

"But it would also be wrong to say that we should turn a blind eye to this."

http://www.stuff.co.nz/business/indu...oes-worry-fans

[Bob Kane]

Mortgagee Sale

http://www.trademe.co.nz/Trade-me-property/Residential-property/Houses-for-sale/auction-335325935.htm

Several apartments for sale.

[WGN ex-property manager]

We recently did rental appraisals for some apartments in the Century City apartments in Tory St....

....Wow that was a eye opener!

The main access hallways are all industrial gridiron floors, to allow the natural light to filter down from the atrium roof through 9 floors and thus meet building code natural light requirements for the "external bedroom windows". Nasty! Don't wear high heels (you'll break an ankle) or a skirt (lurkers from below can look right up it!). Really Nasty.
There are a bunch of benches in the public areas with inset square holes to drop in pot plants.... I guess Terry hasn't been paying his plant hire bills, as the holes are empty and have been turned into unofficial rubbish bins by the residents. The management clearly don't mind this, as they don't seem to even get cleaned up. Lazy and Nasty

[Avalon]

I noticed you were advertising fully furnished apartments in here for $525

Kinda glad I'm using a different PM cos thats really under-renting (and a bit "nasty" to your clients ).

The High Heels thing? If you can walk in high heels round the streets of Welly - you can handle the walkways in CC. While I don't like them myself and feel that the architect should be forced to live in a house made entirely of the damn things for a year -you sure won't break your ankle wearing heels on them!

Looks like the BC could soon be out of Terry's Control so with any luck we may get some improvements in the management of the building soon. But that aside - these are really nice apartments to live in actually - certainly not "nasty" by any stretch of the imagination.

[WGN ex-property manager]

Rent was discussed with owner and set at that level for a reason - speed to get it let.

from your post here : http://www.propertytalk.com/forum/sh...3&postcount=80 where you say the following I'm not sure you're being fair and balanced here.

There are a few issues with the apartments themselves - theres no getting away from the fact that the "Main" bedroom generally backs onto the corridor with a huge window, which is noisy and pointless cos everyone has the curtains closed. But it does make a useful office - and the smaller inside bedroom is pretty much perfectly quiet and dark for sleeping in.

(the corner apartments have a different layout, and doesn't have a bedroom backing onto the central corridor).

he bathroom looks nice, but is a triumph of design over sense - cos theres no storage. And the toilets are loose and the shower screens are cheap. On saying that - CC are getting these things fixed. In the past 2 weeks Ive had about 4 visits from the maintenance guys just tidying up these issues. Phil the building manager is a godsend. So it does look as if the issues are now being seen to.

Its the common areas that let the place down. The corridors are horrid, dark and cold. Serepisos has put carpet down on the top floor, which looks great, but the workmen have told me the body corp have said they don't like it and wont let it get done on the other floors.

The Gym is a (asterisk)hole - and if they try selling you a unit on the basis of the gym and pool - laugh at them. The pool is out of action and looks likes its never really been IN action. CC are still advertising rentals here with the pool and gym. While we did get a key card for the hotel pool - thats tiny - again - style over substance - who wants a pool hanging over the road thats too small to actually swim in?

As an owner? Yeah well - I bought as it went up - so lets just leave that there shall we Ive had the same tenants in for all that time, so again they must actually like living here. You're looking at 480 - 530 in rent depending on whether theres a carpark with the unit or not. We paid too much, but I think to be honest people buying now could get a very good deal, and its worth thinking about.

[WGN ex-property manager]

I noticed you were advertising fully furnished apartments in here for $525

Kinda glad I'm using a different PM cos thats really under-renting (and a bit "nasty" to your clients ).

Your price from here http://www.propertytalk.com/forum/sh...3&postcount=80
"You're looking at 480 - 530 in rent depending on whether theres a carpark with the unit or not. "

Makes $525 with no carpark and no view look like a good rent, especially as the communal areas are going downhill fast (broken beer bottles smashed on the floor, rubbish in the missing plant boxes in the benches etc etc).

I do agree that the apartments themselves are nice, especially the few that have a genuine view, but they do seem to wear fast, and having no natural light in either bedroom is a bit of a con. The communal areas have had prospective tenants actually turn and walk before we even got them to the front door of the apartment

[WGN ex-property manager]

Looks like the BC could soon be out of Terry's Control so with any luck we may get some improvements in the management of the building soon.

Yup - once the BC is out of Terry's hands then you'll get an improvement, and you'll PAY for it.

I have heard that the units terry owns / owned have not paid their BC for a good long time, so the BC is broke and the deferred maintenance is piling up.

[Avalon]

I have heard that the units terry owns / owned have not paid their BC for a good long time, so the BC is broke and the deferred maintenance is piling up.

Um - actually thats not quite true. The numbers show he hasn't paid the last lot - but theres no indication that hes behind for a long time. You would have to speak to YPM - the BC secretary company for an explanation - as I did - Im not happy about the way its handled but the bottom line is he does effectively pay (in the end). A special levy has just been organised to cover deferred expenses - your clients should have details for that in the latest BC (as well as details of how much I just saved them on it )

My numbers are for an unfurnished apartment - I understand even the cheap ones behind monvie are going for more than $525 if furnished. Thats what I based my thoughts on. Fair enough if your clients want a quick rental - but Ive just rented mine out to new tenants in less than 2 days for more than you are charging, and mines unfurnished - so forgive me if I still think you are under renting. Its just my opinion

Im not sure if its helpful - but I will be setting up an owners group shortly - the idea is to be able to organise proxy votes for the minority owners so we can sort out the issues that do exist with the communal areas. Hopefully your clients will respond - because without that power we will continue to be at the mercy of Terry and his block vote - and thats bad for both the rent and the values.

My apartment, and the ones I've rented are holding up fine and wearing well, so not sure what the problem is there.

Anyway - I still really like living here - which I have to be honest did surprise me somewhat