Sargeson administrator’s sale process annoys realtor

The voluntary administrator of the North Shore’s troubled Sargeson apartment project has called in a real estate agency to sell units there, offering 23 places as one lot or individually, but an agency owed commission for selling places there had questioned that move.

Duncan Ross of Bayleys Real Estate said he was now selling units in the new 92-unit Takapuna block after the company behind it, Auburn Developments, went into voluntary administration last month.

“Any purchaser looking to buy the entire portfolio or multiple units in smaller parcels should register their interest,” a statement from Ross said.

Around 69 units had already been sold in the project at 74-80 Anzac St and the remaining 23 were spread across different floors within the pair of six-level blocks connected by an atrium walkway, the statement said.

Ten of the 23 units are subject to affordability criteria because the Sargeson got Special Housing Area status, the statement said.

Covenants registered against the 10 titles means a wholesale buyer would be subject to restrictions in onselling the units as a retail offering, it said.

Last month, Martin Cooper of Harcourts Cooper & Co said his agency was owed money on units they had sold. “It’s a sad story. The mortgagee has taken over.

“We are owed money for the sales, close to $400,000. We sold 30 of them and were paid some money. We settled properties and people moved in but the lawyers have instructed not to pay commissions,” Cooper said on July 29.

He said his business was the main selling agency moving many of the units, although other agencies also sold the apartments.

Companies Office records show Auburn Development’s sole director and shareholder is David James Oliphant of St Heliers. The company was formed in July, 2014.

Bayleys’ statement said the 69 sold units went for around $495,000 for one-bedroom or $860,000 for two bedrooms around the ground floor. Two-bedroom top floor units went for up to $990,000.

Cooper questioned why Bayleys got the job to sell the remaining places, saying it should have gone to Harcourts Cooper and Co and other agencies owed money.

“This has hurt all the agents who did the hard work, sold places and not been paid,” he said.

Cooper said his firm was an unsecured creditor and wanted the opportunity to earn at least some money back from the Sargeson.

“Unfortunately, the current agency agreement does not allow the ability to caveat property titles for unsecured commission. But I’m in discussions with the Real Estate Institute to change the agency agreement so agents’ interests can be protected in the future and this never happens again,” Cooper said.

Cooper said he had put a proposal to the voluntary administrator for his agency to sell the places “but I’ve had no response.

“If there’s no money there, I can live with that but give me the chance to sell these. This will just be a fire sale. I have all the staff lined up and put a great proposal together to market the properties.”

Cooper predicted the mortgagee and IRD would get paid and nothing would be left for the unsecured creditors.

He estimated the 23 units would sell for around $10m to $12m. His agency was owed $481,000, he said.