By Paul McBeth
Dec. 4 (BusinessDesk) - Todd Property Group, the property development arm of the country's wealthiest family, has bought the beleaguered Pegasus Town development in North Canterbury out of receivership.
The property unit said it expects to complete the Pegasus development in 2015, without disclosing how much it paid. The acquisition is Todd Property's first in the South Island, and represents its confidence in Christchurch's residential market, the company said.
"We recognise the need for quality residential housing options in and around Christchurch and expect there will be strong demand for new homes in Pegasus," managing director Evan Davies said in a statement. "The Pegasus development is a highly attractive offering close to the city, which presents residents with a unique lifestyle in a truly desirable setting."
Pegasus Town was tipped into receivership in August when it defaulted on loan payments and wasn't able to reach an agreement with its lender to continue. The development owed NZ Property Finance Partners $142.8 million, according to the last receivers' report.
The secured lender is a joint venture between Goldman Sachs and Brookfield Asset Management, which bought the debt at a discount last year from Bank of Scotland International as part of a $1.3 billion portfolio in New Zealand.
The Pegasus Town development was the brainchild of Infinity Investment Group's Bob Robertson to build a township within driving distance of Christchurch for 7,000 residents. BOSI came on board in 2005, providing a funding line of $107 million for the first development stage and a further $151 million for the second stage.
Last month, Todd Property bought 28 hectares of land north of Wellington, which it plans to develop into 189 sections and two commercial lots, including a New World supermarket.
According to its website, the company holds a three-quarter stake in the Kapiti Landing development, which includes the Paraparaumu Airport, and has developments in Auckland's Stonefields, Long Bay on the North Shore and Okura, Ngunuru north of Whangarei and the former Napier Hospital site.