Two decades after what was intended as a three year Christchurch property deal, investor Shayne Philpott has died with trustees of his family trust needing High Court intervention forcing a sale to extract his share of the venture.
Back in 2004, Mr Philpott joined with two family trusts owned respectively by Greg Smith and Colin Stokes to buy a property on George Noble Road in Yaldhurst. It has potential for subdivision into about thirteen lots.
Subdivision has been hampered by lack of legal access. A 2025 High Court ruling did not help; deciding a neighbour had no obligation to upgrade an existing right of way to status of a legal road.
Mr Stokes lives at one house on site. The other two houses are rented out by his fellow investors.
The High Court was told of some dissension between the three over ongoing funding for their stalled project.
Rates for George Noble Road were left unpaid. Borrowings ran over ANZ Bank’s overdraft limit.
Mr Stokes stopped paying his agreed share of ANZ Bank financing in 2024, complaining his fellow investors were making no progress on implementing an informal agreement that he be granted a larger share of the project in return for all the work he has done; acting as property manager on site and preparing for the currently unsuccessful litigation over road access.
NZ Trustee Services Ltd as trustee of the late Mr Philpott’s family trust wants out, seeking a High Court Property Law Act order for a sale with net proceeds to be split equally between the three. Mr Stokes wants progress on a subdivision to continue.
Associate Judge Lester ordered a sale, subject to conditions.
The court was told two of the three investors favour a sale.
There was never any long-term commitment to the project. It was agreed back at the start in 2004 that any one of the three investors could sell out, if they wished, after three years.
Now twenty years on, arguments over shared commitments to financing at a time when the bank loan is overdrawn raises the risk of a mortgagee sale, Judge Lester said.
Each of the investors’ family trusts are liable as guarantors.
He ordered a valuation of the project on the basis of current subdivision potential, with Mr Stokes given three months to buy out his fellow investors at that valuation.
Failing that, the un-subdivided property is to be sold on market, as is.
Judge Lester ordered that 25 per cent of funds realised, being either net sale price on sale in the open market or valuation price Mr Stokes pays to his fellow investors, be held in trust for a maximum of three months; these funds then released after agreement on financial compensation due Mr Stokes for work carried out over the years on all investors’ behalf.
NZ Trustee Services Ltd v. Burnside Trustees Ltd – High Court (15.06.26)
26.178