‘Queen of property’ says businesses solid after ‘disappointing’ tax saga

Following the liquidation of two of her businesses, self-titled queen of property Nikki Connors says her remaining four businesses are solid, despite Inland Revenue previously making applications to put two into liquidation.

Nikki Connors said Propellor Property Services and Metropolis Design were put into liquidation by the Inland Revenue Department (IR) due to unmet tax obligations, following the impacts of Covid-19.

The two companies are owned by Connors and her son, Nicholas Graham.

‘‘Previously, both businesses had traded profitably for the four to five years since they were established. The IRD is the main unpaid creditor,’’ Connors said.

‘‘It’s extremely disappointing to have to liquidate these businesses, but we will work hard to meet our obligations, as always.’’

She said there were ‘‘no other material tax or debt issues’’ with other businesses in the Propellor/ Metropolis Property Group.

Other businesses in the group included Propellor Property Investments, Metropolis Property Management, Metropolis Real Estate and the Private Property Club.

Two of the companies, Propellor Property Investments and Metropolis Property Management, had received applications from the IR commissioner, and the cases were scheduled to be heard in the High Court at Christchurch on September 15 and June 23.

Connors said these hearings did not go ahead as the debt to IR was paid in full.

Inland Revenue said it could not comment on individual tax matters.

‘‘The group supported each other over the last three years of difficult trading so it was always a timing issue as the group has assets that could have taken care of all debt,’’ Connors said.

‘‘We simply did not get the short extension we needed for these last two companies.’’

She said given this, it was ‘‘surprising and disappointing’’ not to have been able to conclude that negotiation and meet the debt without the need to liquidate.

Propellor Property Investments, the most high-profile of the businesses, handled the financial

Nikki Connors

Propellor Property founder, pictured. transactions of properties purchased by clients, and acted as an advisory that found and completed the due diligence on properties.

Connors said Propellor had helped investors through the global financial crisis, two earthquakes and Covid-19.

‘‘Like many established businesses in these times we have had to regroup and consolidate and concentrate on our core business,’’ she said.

‘‘We are just lucky that we have investment properties ourselves that give us liquidity when we need it.’’

Connors said the property market had slowed due to the difficulty homeowners and developers had in getting finance from banks, increased interest rates and the huge leap in property values.

‘‘These factors have obviously affected all companies in this sector whether property investment companies, real estate agents, mortgage brokers or developers. There are a lot of companies out there hurting.’’

‘‘But once inflation is under control interest rates will go down. Property prices won’t.’’

The High Court appointed Elizabeth Helen Keene and Luke Norman,

of KPMG, as liquidators of Propellor Property Services and Metropolis Design on November 2, according to the Government Gazette.

A spokesperson for KPMG said liquidators were in the early stages of their investigation.

Metropolis Design held stock for furniture packages for property developments, and Propellor Property Services provided administration and support services to the wider group.

Connors said she was working closely with KPMG to ensure assets and stock were liquidated in support of paying creditors.

‘‘The parties expect the matter to be resolved within the next six months,’’ she said.

Graham was the sole director of Propellor Property Services and Metropolis Design. He and his mother are both directors of Propellor Property Investments.

‘‘We have had to regroup and consolidate and concentrate on our core business.’’