Abandoned subdivision snapped up
All sections in an abandoned waterfront subdivision, which was caught up in the Lombard Finance receivership, have been snapped up in a mortgagee sale.
Thirty-five sections being offered in the 44-lot Blue Bay subdivision on Mahia Peninsula, between Gisborne and Napier, attracted interest from hundreds of people, with 50 submitting formal offers.
There were two offers for the entire development, however, these were rejected in favour of 31 individual sales, and two doublesection sales.
Bayleys Gisborne saleswoman Katie Bowen said she could not reveal the sale prices, but the total price from the sales was ‘‘considerably more’’ than the offers received for the entire subdiv- ision. ‘‘The multitude of new holiday makers in Mahia throughout the year will provide support for local businesses and help grow the local economy.’’
Two developers have tried and failed to complete the development. Wellington developer Craig Nisbet was the first to try his hand, when he bought the site for $2 million in 2004.
Nisbet, who was bankrupted in 2008, later sold the section to another developer, Alistair Austin, whose company Gateway Mahia was financed by Lombard Finance. Lombard was put into receivership in 2008 owing 3600 unsecured investors about $111m.
At the time, Austin said his debt to Lombard, including interest, stood at about $17m. Austin’s company went into liquidation in 2010.
Gateway Mahia owned most of the sections. However, some had been sold to private individuals, and Wairoa District Council bought two sites in 2012 to establish Mahia Peninsula’s Opoutama Community Wastewater Scheme.
The mortgagee wanted the remaining 35 lots, with a total rateable value of $3.3m, to be sold. In August, individual sections were being marketed from $67,000 to $143,000.
Bayleys Gisborne manager Karen Raureti said the sale attracted interest from Auckland to Marlborough.