Investors supporting a failed South Auckland property development have returned to China, leaving in their wake a claim against financier Silver Harbour Capital for lost profits totalling $29 million. The High Court put this claim on hold, until they pay legal costs up front as security should they lose.
One on One Property Development Ltd, owned by Jiankang Li, secured funding from Silver Harbour Capital Funding Ltd in 2021 for a 120 lot subdivision planned at Murphys Road, in Flatbush. With subsequent further advances, borrowing eventually totalled $17.5 million.
Auckland-based Silver Harbour is a conduit for property finance advanced by private lenders.
The High Court was told One on One defaulted on its loan. A total of $12.8 million was recovered in a 2024 mortgagee sale, leaving a $7.3 million shortfall.
Just prior to its mortgagee sale, Silver Harbour was surprised to find a caveat lodged against title to the land by a Mr Ee Kuoh Lau, also known as Augustine Lau, claiming to have a fifty per cent equity interest in the development.
This was the first Silver Harbour had heard of Mr Lau’s existence and his supposed involvement. Legal action followed, removing his caveat from the title, enabling a mortgagee sale to proceed.
Mr Lau, Mr Li and One on One subsequently sued Silver Harbour alleging Silver Harbour’s director Roger Su had made misleading promises about refinancing, causing One on One to abandon potential alternative options.
They also allege Silver Harbour sold the property at an undervalue. The buyer is associated with Silver Harbour, they allege.
Evidence was given that while One on One is a New Zealand registered company, it no longer has any apparent commercial presence in the country. Chartered accountants listed as the company’s registered office say One on One is no longer a client. Mr Li has apparently returned to China.
Mr Lau was bankrupted in 2024, for the second time, having been discharged from a prior bankruptcy three years previously.
Insolvency Service disclaimed, as having no commercial value, all legal rights claimed by now bankrupt Mr Lau against Silver Harbour.
In the High Court, Justice Blanchard barred Mr Lau from continuing with his claim against Silver Harbour unless he first gets an Insolvency Act court order allowing him to continue legal action in his own name.
Separately, both One on One and Mr Li were blocked from continuing their claim until first putting up $36,000 security to cover Silver Harbour’s initial legal costs.
Lau v. Silver Harbour Capital Trustee Ltd – High Court (19.05.25)
25.119