Christ’s College Leasehold Properties
In the late 1800’s, Christ’s College was bequeathed land which it later developed into about 2,000 leasehold residential sections in the 1950s. (A leasehold property is where the occupier owns the so discontinued the previous dwelling but pays rent to the leaseholder for the land.) Most of these sections were then subsequently sold to the homeowners as and when they could afford to.
In 2010 there were 97 remaining and these were sold to a private Auckland based investment company. The company did not wish to break up its investment so discontinued the previous arrangement to sell individual sections. The homeowners were not advised of this change of rules at the time of sale to the company, leaving them with rising land rentals and limited options on raising a mortgage.
In 2015, the company was approached by a group of homeowners to sell the land in individual transactions. The company advised it would only be interested in selling in a single transaction where all 97 properties were sold at once. After a very public outcry, we were approached to find a solution.
We put in place a plan to purchase all 97 leaseholds, then offer the leaseholds to occupiers on an individual basis. 52 occupiers chose to purchase their leaseholds and the remaining 45 leaseholds were sold to single investor. All transaction settled on the same day.
The result was 52 happy new property owners with full ownership of their properties, and an investor receiving rent from the remaining properties.
While property syndication is our primary business, our ability to adapt, think outside the box and provide solutions to what many may think are an impossible task.