Date set for RSA building auction

The mortgagee sale of the former New Plymouth RSA Strandon clubrooms will take place with an auction on-site next month.

The property, at the centre of a bitter dispute between the club and the sons of former president Peter Crow, has been listed for mortgagee auction by First National Real Estate.

The auction is being held at 1.30pm on Wednesday, September 15, on the property.

First National real-estate agent Judy Dixon-Hurlstone is handling the sale and she said the property had already attracted strong interest.

She said it was a misconception that mortgagee sales always produced cheap sale prices.

"I've seen many mortgagee properties sold for a lot more than market value," she said.

"I've got no idea at all [what the final price will be] but I can say it's a property creating good interest and our intention is to get the best price for all parties involved."

Porn mogul Steve Crow and his brother David bought the property in 2008 for $1.9 million to bail out the cash-strapped RSA.

They took out two mortgages, one for $375,000 from finance company PMIT Nominees Ltd and another for $1.525m in vendor finance from the RSA itself.

The partnership between the Crow's and the club quickly went sour however and this year the Crows defaulted on their mortgages and the RSA walked away from the clubrooms.

The RSA owes more than $700,000 to its welfare arm.

RSA spokesman Steve Bone said yesterday he did not want to speculate on what price the property might fetch or on what the rules of sale might be.

He said the club would be present at the auction.

Mr Crow said he had nothing to say about the auction and would not be attending.

"There's nothing in it for David and me, as far as I'm concerned I've washed my hands of it."

- © Fairfax NZ News