Delta's Luggate interests 'sold'

Delta's controversial Luggate Park development is under offer, the company's chief executive says.

The property's agent - Colliers International - yesterday showed the property as being sold on its website, and its agent confirmed it had sold.

Delta, which is owned by the Dunedin City Council, paid $5.3 million to buy a 50-50 stake in the residential development in 2009.

Delta chief executive Grady Cameron said in a statement last night in response to Otago Daily Times questions to the company that it had received considerable buyer interest, with the result that Luggate Park was under offer.

''We will provide a further update on conclusion of the sales process.''

The company was asked what the sale price was, but Mr Cameron did not answer the question in his statement.

Dunedin Mayor Dave Cull and Dunedin City Holdings Ltd chairman Denham Shale were approached for comment about the sale yesterday afternoon and said they had no knowledge of it.

However, Mr Shale confirmed he knew ''something was in the wind''.

The development has been the subject of much controversy, alongside Delta's purchase in 2008 of Jacks Point, with both investments being investigated by the Office of the Auditor-general.

Delta and its investment partner, property developer Jim Boult, have had the property, next to the Wanaka-Cromwell highway in Luggate, actively on the market since September.

Luggate Park was described as a residential development opportunity offering seven remaining unsold residential lots on separate fee-simple titles and two future development sites consented for 160 residential lots. In October, Delta confirmed it had written down the value of its investments by $9 million, including $7.5 million for the Jacks Point and Luggate properties.

In November, the Office of the Auditor-general launched an inquiry into the land purchases.

The investigation is expected to take between three and 12 months to complete.

rebecca.fox@odt.co.nz

 

Further enquiry needed

Will Mayor Cull start an investigation to determine what management fees (if any) were paid to current or former directors of Jacks Point during the period that Delta Utilities was conducting infrastructure work on the subdivision and clearly show where those are accounted for on the balance sheet?

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