On Tuesday, YIJU reported that a Chinese developer was selling the apartment development site at 46 Upper Queen St for half its purchase price.
Now another Chinese developer is urgently selling a residential development site.
The land is in Ranui, west Auckland, where 33 homes were originally planned. Together with the abandoned Basilica Apartments project at 46 Upper Queen St, a total of 68 homes have come to nothing.
The Basilica Apartments project at 46 Upper Queen St has stalled
Real estate agent Jame Law says both developers want to sell as quickly as possible and are willing to accept low offers.
“After the seller at 46 Upper Queen St made a desperate exit, another Chinese developer approached us and instructed us to sell this project urgently. The owner rushed into our office, gripped my hand tightly and asked me to sell the land quickly.
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They even suggested using wording such as ‘fire sale’.”
James Law says the owner's development site is at 42–52 Munroe Rd, Ranui.
The Ranui site's owner is Richard Lan Zhen. James Kellow of NZ Mortgage & Securities says his company originally lent money to Richard Lan Zhen, who holds the Ranui property.
Kellow stresses, however, that the circumstances behind the two land sales are very different.
Kellow says, “The main shareholder in Richard's company, Sunyu Group, is a local New Zealand developer. Richard lives in Greelane and has extensive property development experience in New Zealand. Although he was born overseas, he is more like a local New Zealand developer.”
Kellow says his company provided NZ$20,000,000 in funding for Richard's townhouse project in Takapuna. The project is of a high standard and presales have been very strong. The company's loan for the project will also be repaid in full.
Kellow says he strongly supports Sunyu Group and is also willing to fund its Ranui development. Richard could also invest the profits from his Takapuna development in the Ranu project. Homes on Munroe Rd would cost less, but would still be of a high standard.
James Kellow
Kellow believes the Ranui site has been listed mainly to test the market, and that Sanyu is under no financial pressure.
“If the Ranui site does sell, NZ Mortgage & Securities would be happy to provide development funding to the new owner, because the development is consented and makes very good use of the land.”