A prominent Palmerston North building owned by a company with a receivership of income arrangement has failed to sell at tender.
The building, 22-26 Rangitikei St, is owned by East Rangitikei Property Trust and has a capital value of $4.2 million.
While originally for sale by tender, with offers due July 17, the building was again listed this week.
It is now listed for sale by negotiation.
East Rangitikei Property Trust had a receivership of income arrangement – a step short of full receivership – placed on it after Wellington property investor Mark Dunajtschik advanced mortgages on the properties two years and nine months ago.
An advance was also made to West Rangitikei Property Trust, which owns 5-21 Rangitikei St, and also has a receivership of income arrangement.
Mr Dunajtschik took action against the companies in July to get back the $4.8m owed to him.
East’s property is made up of retail space, office areas, eight levels of accommodation and 17 basement car parks. According to Colliers International, it makes rental income of $476,918 per year over four tenancies.
East and West are both directed by Robert Stadniczenko and are owned by Brandons Trustee Company.
– © Fairfax NZ News
Oh no! Drake may have to find new premises…*snigger*