Bank left with shortfall after Serepisos' tower sells

Last updated 11:53 02/06/2012
ASB Tower
ANDREW GORRIE
SOLD: The ASB Tower on Hunter Street.

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ANZ National Bank has been repaid $21.4 million following the sale of bankrupt developer Terry Serepisos's ASB Tower headquarters in Wellington.

The 16-storey block on the corner of Hunter St and Jervois Quay was put up for tender last year on the instructions of Century City Investments receiver Barry Jordan.

It was sold to Wellington lawyer Mike Garnham for $22m. This is less than the $23.5m Serepisos paid for it in 2006 and well under the property's 2009 rating value of $34.2m.

ANZ, who appointed Jordan after Serepisos defaulted on payments, had a first mortgage on the property of $25.4m and was also owed $820,000 on loan guarantee.

Repayments following the building sale have left the bank with a shortfall of $4.8m and no money was available to repay other creditors.

In his latest report on the receivership, Jordan said Allied Farmers Investment was owed $4.295m on a second mortgage and a second ranked security agreement. Inland Revenue also had a preferential claim of $60,000 for unpaid GST.

Serepisos, who was sole director of the company, was bankrupted last September with debts of about $200m.

Century City Investments' only other assets were two sports cars owned by Serepisos. One had been sold and the other was due to be settled in coming months, said Jordan.

Money was also owed by a tenant.

"Once the final payment is collected from the remaining tenant and the proceeds of the final sports car are received, the receivers will retire and hand the company over to the liquidators to wrap up the affairs of the company," he said.

Nearly all of Serepisos's properties have now been sold to pay off debts. The potentially valuable Farmers/Deka block at the bottom of the Cuba Mall was put up for sale two weeks ago by the receiver of Century City Ventures, David Ruscoe.

Ruscoe is also trying to find tenants to fill vacant floors in the large IBM office block in Petone to maximise its value before putting that on the market as well.

Century City Ventures has debts of more than $100m.

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- The Dominion Post

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