Property firm loses deposit

Press, 6 December 1989, Page 50

Property firm loses deposit

PA Wellington A Christchurch property investment company will lose the $4 million deposit it paid as part of a S42M deal to buy Wellington’s Harbour City Centre that was never concluded. In March, 1988, Bacharach Holdings, a subsidiary of Grose Property Holdings, failed to settle a contract to buy the Lambton Quay property, formerly known as the DIC building. The contract was cancelled after Bacharach refused to settle, maintaining the centre’s owner, Harbour City Realties, had breached a condition of the contract by concluding rent reviews with 23 tenants after a specified date (November 4, 1987) and without their consent. The matter was

taken to the High Court and Mr Justice Ellis decided only, one of the 23 reviews was in breach of the contract terms.

In a reserved decision, he said it was his view that even the effect of the alleged breaches did not go to the root of the contract and were not sufficient grounds for refusing to settle. He ruled Harbour City Realties was entitled to keep the S4M deposit plus any costs associated with retaining or recovering that sum. Much of the hearing, held during October and November this year, was devoted to the evidence o/ valuers. From the various assessments and other considerations, Mr Justice Ellis decided on a value of S3BM.