Troubles no barrier to $2.2m lodge purchase

BY KAREN GOODGER

Nelson developer Scott Sanders and his business partner Clare Davies purchased Raetihi Lodge in the Marlborough Sounds for $2.225 million when one of Mr Sanders' other companies was sliding towards liquidation.

Mr Sanders is the sole director of Monaco Village Ltd, which developed the $60 million Grand Mercure Nelson Monaco. Last week it was placed in receivership and liquidation.

Receiver David Fisk of Pricewaterhouse Coopers has confirmed that Monaco Village Ltd owes $4.6m to Lombard Finance and $1.09m to trade creditors and resort investors.

Research by The Nelson Mail reveals that Marlborough Sounds Holdings – a company Mr Sanders and Ms Davies are equal shareholders in – bought Raetihi Lodge for $2.225m in December, and the sale was settled last month.

Mr Sanders told the Mail yesterday that South Canterbury Finance approached them to buy the property and provided 100 per cent finance.

"We've been brought into that project to resuscitate that business, because of our expertise of over 25 years in the business, because we have a record of taking projects that have stalled and getting them finished and making them work operationally."

He said the purchase had nothing to do with Monaco Village Ltd.

Monaco Village Ltd liquidator David Vance said it wasn't unusual for businesspeople to distance their various operations so that when one failed, the others did not follow suit.

"The fact that one of his investments has failed and has not brought down the other means he has organised his affairs appropriately to protect that position."

Meanwhile, Mr Sanders has also agreed to buy land from the Green Acres Golf Club to develop an eco-lodge at Best Island.

Club board member Ron Heath said the sale agreement was conditional on Mr Sanders getting appropriate consents for his development.

A resource consent had been issued but Mr Sanders was appealing some of the conditions.

That appeal was due to be heard soon, Mr Heath said.

"The golf club itself is not a developer, and it won't be putting any money into the development."

South Canterbury Finance general manager asset manager Ian Thompson confirmed to the Mail yesterday that it approached Mr Sanders and Ms Davies to buy Raetihi Lodge and provided 100 per cent funding.

Mr Thompson refused to comment further.

THE PLAYERS

Scott Sanders: Sole director of Monaco Village Ltd which developed the resort and part owner of Monaco Management Ltd which runs the resort.

His involvement started in 2005 when he became a joint shareholder with founder Mike Gepp. Before that he managed the Terrace Downs High Country Resort, spent some time overseas and was involved in Canterbury's hospitality industry.

Clare Davies: Part owner and managing director of Monaco Management Ltd which runs the resort.

She was employed by the resort before Mr Sanders coming on board, having previously been the manager of the Prince Albert Hotel in Nelson. Mr Sanders made her a 50 per cent shareholder in 2007. Last year she was named one of four finalists in the 2009 PATA Young Tourism Professionals Awards.

Mike Bannock: Director of the Monaco Hotel and Resort Lessors Committee Ltd which has been fighting for the rights of investors who have been incurring endless costs and few, if any, returns from their units.

The lessors company became incorporated in 2007 with the owners of 27 units registered as shareholders. The owners of 54 currently contribute to its trust fund. Mr Bannock is a former owner of Ocean River Sea Kayaking and owns two resort units.

Warwick Walbran: Head of the guaranteed investor group, involving the owners of 19 units in the resort.

Mr Walbran is a Wellington-based consultant who purchased a unit in the resort in 2007 and successfully sought to liquidate Monaco Village Ltd which sold him the investment.

John Fisk: PricewaterhouseCoopers partner who is the receiver for Lombard Finance which was owed $4.6m by Monaco Village Ltd.

Lombard Finance placed Monaco Village Ltd in receivership after the court agreed to liquidate the company. Mr Fisk is acting as the receiver for Monaco Village Ltd.

David Vance: A partner in the Deloitte recovery team who has been appointed liquidator for Monaco Village Ltd.

- © Fairfax NZ News