Luggate Park. Photo by ODT.
The size of the loss Dunedin City Council-owned Delta
Investments Ltd has made over its investment in its residential
development at Luggate could be confirmed later this month.
Delta's Luggate Park joint venture with property developer
Jim Boult is on the market as a deadline private treaty sale
closing at 4pm on November 14.
Included in the sale notice are seven residential lots and
two "future development sites" amounting to 51ha consented
for 160 residential lots.
Delta has already written down its Luggate Park investment by
Its annual report values its total current assets in the
joint venture at $493,000 and lists as a current liability a
Westpac loan of $868,000.
In the year to June 30, 2012, Delta earned $2000 from its
Luggate Park development and spent $79,000.
Colliers agent Rory O'Donnell said he had had "some interest"
in the development but it was hard to know where buyers would
Mr O'Donnell said development land was "harder to sell" at
present because less bank funding was available to potential
"[The banks] are a wee bit reluctant to lend on development
However, people were "creeping back into the market" looking
for development opportunities, Mr O'Donnell said.
Delta also owns 100 sections at Jacks Point, near Queenstown.
In September, chief executive Grady Cameron told the Otago
Daily Times the company would develop the sections'
infrastructure before selling them.
The company's annual report says a decision to exit its
development property ownership would mean booking a $7.5
million pre-tax write-down.