Developer Gregory Olliver lost his battle for control of over 10,000
square metres of prime land in Auckland’s eastern suburbs. The High Court ordered a caveat be removed
enabling a liquidators’ sale to Oceania Healthcare go ahead. It further ordered Mr Olliver vacate
immediately rent free housing where has been living on site.
Listed
company Oceania plans to build a retirement village on a Waimarie Street site
in St Heliers. The site is owned by Mr
Olliver’s company CIT Holdings Ltd, now in liquidation. Disputes over control of CIT have seen sequential
High Court litigation first between Mr Olliver and his former spouse and then
between Mr Olliver and liquidators of CIT.
Back in
2009, CIT purchased Waimarie Street with a $6.75 million Bank of New Zealand
loan. BNZ is unpaid. The loan has now ballooned out to more than
$14.5 million with interest accruing at about $100,000 per month. CIT is in liquidation with debts in excess of
$22.5 million.
The High
Court was told Mr Olliver has resisted all efforts by the liquidator to sell
Waimarie Street. He has made multiple
offers to buy, all of which were refused.
He created a security deed in his favour, later invalidated by the High
Court, attempting to appoint receivers to take control of the land. When CIT liquidators were about to settle the
Waimarie Street sale to Oceania in December 2017, Mr Olliver lodged a caveat
against the land blocking the deal. He
claims an interest in the land arising from a trust.
Justice
Peters ordered removal of the caveat. Liquidators
had managed to get the best price possible.
They are obliged first to pay off BNZ and CIT’s preferential
creditors. Mr Olliver’s claimed right to
share in anything that might be left could be dealt with later. The court was told liquidators’ costs and
legal expenses to date have run to some $450,000. The price Oceania is paying was not
disclosed.
Mr Olliver
was also ordered to shift out of a residence at 22 Waimarie Street. This property covers nearly 3000 square
metres. He had no lease or tenancy
agreement with CIT Holdings entitling him to stay. He had not been paying rent. The liquidators’ earlier attempt to get a Tenancy
Tribunal order removing Mr Olliver failed.
With no tenancy agreement, the Tribunal had no jurisdiction.
CIT Holdings Ltd v. Olliver – High Court (23.02.18)
18.043