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