Over 200 Nido building investors may be left $23.4 million out of pocket following the site’s mortgagee sale.
The 27,000 square metre furniture store opened in May last year, only to go into receivership six months later, having closed its doors in March. Nido’s $59m purpose-built building and land in west Auckland has now been sold in for $46.3 million to an unknown investor.
The sale has left the vendors, a property syndicate of 229 small investors, with less than a third of the near-$35m they sank into it.
Another investor, a retired farmer, told stuff that he had invested $1m and felt sorrier for his partner who had invested all of her savings.
Construction of the Nido building was originally intended to be finished by September 2019, but was dogged by defects and delays, and finally Covid-19. As a result, the building was incomplete when the store opened last May.
Vijay Holdings went into liquidation in November last year, with Nido’s trading company, Magson’s Hardware, being placed into receivership a month later. Its collapse meant the rent could not be paid and the $25m loan by short-term financier Pearlfisher could not be serviced.
In February, a receivers report for Magsons Hardware noted that the company had $13.5m in assets and $22.3 million in liabilities.
Preferential claims of $645,292 to Inland Revenue and $565,000 to employees have been paid in full but unsecured creditors are not expected to receive anything.
Original article found at stuff.co.nz