Auckland’s
Melanesian Mission Trust was justified in cancelling a $3.74 million sale of
subdividable land at Pamela Place in Auckland’s eastern suburbs to property
developer Greg Olliver after his company failed to front with the cash and
tried to push potential development costs back on to Melanesian Trust.
The High Court was told
interests associated with Mr Olliver agreed in 2015 to buy 4.3 hectares of bare
land in Pamela Place, Kohimaramara from the Melanesian Trust together with
subdivision rights which extend over 21 neighbouring properties – giving a
total area of 22.3 hectares. Kohimaramara
Trust Ltd, the purchaser nominated by Mr Olliver, refused to pay on due date
arguing the Melanesian Trust was first required to assist in signing up the 21
neighbouring properties to a potential subdivision. Associate judge Bell ruled Melanesian Trust
was ready and willing to settle on due date; all it had to do was transfer its
rights over the 21 properties – it was for Kohimaramara Trust to act on them.
A bush-clad gully borders
Pamela Place, steep in parts with some remnants of native bush but mainly
covered with invasive exotics.
Twenty-one neighbouring properties extend into the gully with encumbrances
registered against titles giving the Melanesian Trust a right of resumption
over defined parts of each property: the Trust can claim back the defined part
and re-subdivide that portion of the land.
The $3.74 million price included a purchase of these neighbouring rights
of resumption.
Judge Bell said any
owner of these rights of resumption must pay all costs of getting subdivision
consent, but is not required to pay compensation when taking back land from the
affected 21 property owners. There is no
evidence that current owners are aware of any proposed sale to a property
developer, he said. Neighbours to a
fresh residential development in an affluent suburb are likely to object. This risk lies with the purchaser, he said.
Kohimaramara
Trust v. Melanesian Trust – High Court (1.03.17)
17.020