Texas businessman Trammell Simonton Crow was an investor in Merino Downs with co-developer Chris White, an offshore New Zealander.
The Dallas man is a philanthropist, entrepreneur and an environmentalist who developed EarthX into a large event raising environmental awareness. His father founded, at one stage, the largest real estate company in the world.
On the Merino Downs website, Mr Crow explained why he liked the Twizel area.
"It’s not cut off from my international day-to-day work, and has the peaceful outdoor environment I’m looking to experience with my Kiwi mates, yet not skip a beat from EarthX."
However, ties between the business partners became strained.
Mr Crow applied via his company, Pounamu Strategic Holdings, for Mr White’s company TSCCW Twizel LP Management to be put into liquidation at the High Court at Christchurch on October 2.
Pounamu Strategic also filed a liquidation application for Hooker Holdings Management — a building company jointly owned by him and Mr White — and liquidators were appointed on November 20.
Mr White said the liquidation was an unfortunate situation of two business partners who could not come to an agreement and there were no outside creditors.
"It was a highly profitable subdivision to date and I think it will be a highly profitable subdivision going forward. I am very proud of what was created for lot owners and the town ... it’s raised the bar and other developers have told me that it raised their bar and the square-metre price."
He said Mr Crow had been a great partner and it was a shame a strong friendship had ended, and they had not talked for two and a-half years.
BDO Christchurch insolvency practitioners Colin Gower and Diana Matchett put out their first liquidators report to creditors and shareholders for TSCCW on December 16.
An overall shortfall or surplus has yet to be established.
"We understand that prior to our appointment, the company did not trade. Rather, it served as the general partner of Twizel LP which developed a subdivision known as Merino Downs in Twizel."
There were no known creditors at this stage, they said.
About 20 lots have been sold of the 34-lot development described in a Trade Me listing as the most exclusive subdivision in the Mackenzie region.
The 22ha site is on land formerly part of Ben Ohau Station with the co-developers sinking a lot of money into recreational reserve areas and landscaping.
Mr White said there had been little activity the past two years because of rising building costs and higher interest rates than overseas.
Bare lots of between 5000sqm and over 6000sqm with protective covenants are still available, priced in another listing as starting from $435,000.
The show home owned by Mr Crow was unsold when placed on the market last year.
Sothebys was brought in for the subdivision’s launch before stepping aside for other companies to take over sales.
Sales associate Matt Finnigan said he had been involved in the project little since then, but the subdivision had been developed to a high standard.
An impressive show home was built "well north" of $1 million in an attempt to set the tone for the subdivision, he said.
Mackenzie District Mayor Scott Aronsen said there would be little impact on Twizel.
"It’s not like they are going broke and they don’t owe anyone money. It’s an overseas investor and an offshore New Zealander that are partners in the business and they are merely parting ways."
