Seascape Auckland ghost tower developer Shundi Customs estimated to owe $588.8 million
The developer of the Auckland ghost tower Seascape is estimated to owe $588.8 million to its creditors, including the bank which loaned $133m, according to the receivers’ first report.
Shundi Customs built the 56-level tower near the waterfront.
But on March 4, lender China Construction Bank had receivers Neale Jackson and Brendon Gibson of Calibre Partners appointed to the business.
Their first report showed related party creditors are owed $372m, secured creditor the China Construction Bank is owed $133m, unsecured creditors are owed $71m, third party deposits are $12m and employees as preferential creditors are owed $409,000.
Total assets are listed as “unknown”.
Shundi Customs was an Auckland-based property development company incorporated in 2014, the report said.
It owns Seascape on Customs St East.
That is a mixed-use tower with a five-level basement car parking facility.
The site is 2729sq m.
Inland Revenue debts are put at nil.
Shundi Customs also guaranteed the debt of Shundi Tamaki Village, which owns a property in St Johns, bought from the University of Auckland.
Shundi Tamaki Village debts were put at more than $117m, comprising:
- Related party creditor $64.6m;
- Secured creditor China Construction Bank $38m;
- Secured creditor Bank of China $13.6m;
- Other creditor $18m;
- Unsecured creditors $2.8m;
- Bonds from tenants $511,000.
Assets of that company were estimated to include $9.8m deferred tax and $1.9m intercompany receivables.
Mike Bayley, chairman and managing director of Bayleys, announced a campaign to try to sell Seascape.
Bayleys and Knight Frank have a joint agency on the tower.
KordaMentha Real Estate has been appointed as the transaction adviser.
Bayley said: “Seascape represents a unique control opportunity. The development has progressed beyond the most time-intensive stages, allowing future investment to focus on delivery, optimisation and value creation.”
Michael Kwok, Knight Frank Australia capital markets head, said this was an unusual opportunity.
“Assets of this calibre are tightly held. When they become available at a reset point, with the ability to acquire control and create value through execution ... The project will attract significant cross-border interest,” he predicted.
Dan Dixon, Knight Frank Singapore-based Asia Pacific markets head, thinks Asian buyers could be keen on Seascape.
A Seascape neighbour has previously complained that plaster was being blown off the skyscraper but Auckland Council says it is paint and being taken care of.
“Debris is falling onto the footpath from the tower,” said the neighbour, who did not wish to be identified.
Building consents general manager Ian McCormick said paint had been coming off steel in the tower, not plaster.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.
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