Aban­doned sub­di­vi­sion snapped up

The Napier Mail - - FRONT PAGE - CHLOE WIN­TER

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.

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