I go chop your dollar, Ctd

Terry Serepisos reckons he can cover his debts. Others aren’t so sure:

Questions have been raised about the $232-million value put on his commercial and residential property by Terry Serepisos.

Multiple commercial property and finance market sources believe Mr Serepisos would struggle to get $60m from the sale of his commercial property, leaving a shortfall of $172m.

The sources said there was no way the remaining 150 or so residential properties Mr Serepisos owns would fetch an average $1.146m each to make up the shortfall.

In the past year, the average sale price for city residential properties has been about $500,000. Just to clear his $203m debt, those properties would need to sell for an average $953,000.

Wellington’s Harcourts real estate managing director, Marty Scott, said if the commercial portfolio fetched only $60m, making up the difference would be difficult.

The valuation “sounds significantly high” and anyone trying to sell the properties would need to ask realistic prices, he said.

Of Mr Serepisos’s residential properties, 125 are apartments. The sources said it was arguable whether Mr Serepisos still owned an “A-grade” commercial building.

His best building, the ASB Tower building in Hunter St, has a 2009 rateable value of $34.2m but requires extensive and costly earthquake-strengthening work.

Most of his IBM building in Petone, with a 2010 rateable valuation of $25m, lies vacant. His Ivivi building in Victoria St had a rateable value of $6.5m but fetched $4.3m when it was sold three weeks ago.

The sources spoken to all believed Mr Serepisos and his creditors would take a bath whether there was an orderly sale or not.

Meanwhile I’m still waiting for that writ from Terry.

 


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.

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