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  1. #1
    Join Date
    May 2007
    Location
    Wellington
    Posts
    1,520

    Default Is Hanover Going Under? Or is Henderson?

    Hanover says Queenstown Five-Mile project put in receivership

    Updated 12:15PM Thursday July 10, 2008

    "It is in our view quite improper. We will be applying immediately for an injunction ... I am just going to meet with my lawyers now," he said.
    Hanover said the defaults arose several months ago and Hanover had been working with the borrower to determine a suitable way forward.
    "However, as a result of other third party creditors commencing legal action against Five Mile Holdings, and enforcement action against other Property Ventures Limited companies (the parent of Five Mile Holdings), Hanover Finance believes it is in the best interests of its investors and other stakeholders to exercise its rights as a secured creditor.
    "Accordingly, a receiver has today been appointed to Five Mile Holdings so that the assets can be best managed for all interested parties and the loan repaid in due course."
    Henderson said the injunction was improper because Reesby was appointed several months ago to act for Property Ventures.
    The 5 Mile Development was supposed to house 10,000 people and include a shopping centre complex. The multi-stage project was expected to have costs hundreds of millions of dollars to build and be worth NZ$2 billion on completion. Activity has stopped at the site after a large hole was dug for an underground carpark for the shopping centre part of the development.
    * Hanover Finance also said today it has sold the troubled Kinloch golf resort development project near Taupo for an undisclosed sum.
    Hanover held a secured first mortgage over Kinloch, which included the golf course bearing the name of golfing legend Jack Nicklaus and multiple development sites on the 345 hectare property.
    The domestic purchaser, also undisclosed, planned to continue to develop the property, Hanover said in a statement.
    Hanover sought a mortgagee sale of the assets in May "in order to protect value in the assets for its investors".
    The secondary backer for Kinloch was FE Investments, half owned by finance company First Eastern Finance.
    Selling agent Colliers International said the property was worth $57.7 million and included was an 18-hole golf course and club house ($18 million), 68 residential sections ($535,000 each) and a lodge/hotel site, clubhouse and 50-unit villa complex ($3.5m).
    In March last year, Nicklaus, the American winner of a record 18 majors known as the Golden Bear, came out to hit the first drive to open the Jack Nicklaus Signature Golf Course.

  2. #2
    Join Date
    Dec 2006
    Location
    Auckland
    Posts
    669

    Default

    More likely Henderson.

    Hanover are being very very conservative in their management of loans - they are completely focused on keeping afloat and need their investor's trust more than their developer's appreciation.

    At the first sign of a default, they will pounce, and as a result I believe they are most likely to make it through this slump.
    two ears and just one mouth.. for good reason.

  3. #3
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Hanover are recalling loans left right and centre at the moment. I know of several developers in trouble due to no way to refinance elsewhere.
    Doesn't help the developers but is good news for Hanover's investors. They should stay solvent hopefully.

  4. #4
    Join Date
    May 2007
    Location
    Wellington
    Posts
    1,520

    Default

    Bob Jones was spot on yesterday on The Good Morning Show when he said ALL Developers evenually go under, no exceptions. He predicted they are all stuffed and that this recession will last 3 years.

  5. #5

    Default

    I think they will both go under. What's a few hectares in Queenstown with a large excavation in the middle of it worth these days?

  6. #6
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,305

    Default

    For Hanover I guess it really depends on how many of their developer borrowers repay the money. I guess some won't be able to, some will refuse to and some will capitulate.

    Plus the wealthy owners can always kick in a bunch more money to keep it afloat can't they!

    David

  7. #7

    Default

    I doubt the wealthy owners will kick in anymore money or the developers will be able to pay anything back. Its another loss looming for those folk who invested in Hanover.

  8. #8
    Join Date
    May 2005
    Location
    Takapuna, North Shore
    Posts
    213

    Default

    Quote Originally Posted by Davo36 View Post
    For Hanover I guess it really depends on how many of their developer borrowers repay the money. I guess some won't be able to, some will refuse to and some will capitulate.

    Plus the wealthy owners can always kick in a bunch more money to keep it afloat can't they!

    David
    Hate to say it as I really really don't want to see Hanover fall over but you will see this bled dry by the owners before you will see them put more money in at the moment
    For property financial solutions
    CALL 021300192 or [email protected]s.co.nz
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  9. #9

    Default

    I heard on the radio this morning that Hanover had sold the loan to an Aussie crowd. I think they were called "Fortress".

    I think that Hanover really doesn't care - they have got all they are going to get out of this loan and now Fortress will be trying to get back more than they paid for the loan.

  10. #10
    Join Date
    Dec 2006
    Location
    Manawatu
    Posts
    218

    Default

    Interesting to see that Hanover has sold the Kinloch Golf development.
    I would suggest they took a bath on that as the area is flooded with empty sections that no one wants to buy.


 

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