Plans by Studio New Zealand Ltd to build a film studio on industrial land at a south Auckland site in Takanini hangs on arguments with the Wallace family that it has an enforceable $53.5 million contract to buy the site.
Studio New Zealand Ltd, managed by Andrew Coldicutt, has $40 million funding from government for construction of the film complex as a ‘shovel ready’ project. Wallace family interests deny there is any contract to sell their Porchester Road site. The land is owned jointly by two Wallace family trusts. The property was used historically for stables and as a horse training track.
The High Court was told negotiations for Studio New Zealand to buy or lease the site started back in 2016. The possibility of a joint venture with the Wallace family was mooted. Proposals firmed up in 2020 with an interchange of emails: Wallace family offered to sell at $53.5 million; Studio countered seeking a three-year option to buy at that price. Wallace family refused to allow an option, indicating the original offer to sell at $53.5 million was still on the table. What is in dispute is a Studio New Zealand email response agreeing to buy at $53.5 million. There is more to the deal than just price, Wallace family says. A simple email will not suffice; a detailed agreement for sale and purchase needs to be agreed. Wallace family interests refused to sign a Studio New Zealand agreement for sale and purchase sent after its email agreeing to buy.
Associate judge Andrew upheld Studio New Zealand’s right to lodge a caveat against title to Porchester Road. He said all legally essential terms for a contract had been agreed by email: the property and the price. It is for a full court hearing to determine what other terms might apply to their contract.
Wallace family expressed concern that Studio New Zealand is a shell company with no assets of substance and no income.
Studio New Zealand Ltd v. Wallace – High Court (3.05.21)
21.075