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March, 2011 Only eight of 19 cut-price lots of scenic real estate sold at a silent auction near Queenstown this month as part of an Allied Farmers' debt recovery campaign.Nineteen sections at Jacks Point on land previously associated with failed firm Hanover Finance were up for sale during a silent auction. Overall the lots were worth about $11 million, the expected price tag was less than $5m and the eventual sales amounted to about $1.4m. Most of the lots were bought by overseas bidders. Urologist Naryan Sampangi, of Dunedin, successfully bid for a lot, where he plans to build an eco-friendly home for business use and holidays. At a reduced price it was a reliable investment, he said. "You're not going to lose much, I don't think you can get a better place than this, for retirement, for a holiday, for the weekend," he said. Companies in the Allied Farmers' stable negotiated the original deal with Hanover Finance and United Finance. Allied negotiated a deal in 2009 to acquire more than 100 sections in Jack's Pt from Hanover, a debt-for-equity swap. Most of the auctioned sections were about 1000 square metres, with valuations up to $430,000. The auction was run by Ray White Real Estate. Ray White owner Bas Smith, of Queenstown, said he expected more interest from Queenstown-based bidders but it was a sign of a cautious property market. Reserve prices were set between $165,000 and $205,000, and overseas bidders registered from Australia, the Middle East and China, he said. Of the eight sections sold, seven sold for about half-price at the reserve prices while one Pendeen Cres section sold for $206,000. The Pendeen section was 1134 square metres with an original valuation of $395,000. Allied owned other sections at the planned 600-home development and the sale would help with debt recovery, Mr Smith said. The vendor was Lifestyles of New Zealand, an Allied Farmers-affiliated company that bought the sites in 2006.
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Queenstown Property Limited |
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