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Two Large Student Flats for Sale in Dunedin Following Company’s Bankruptcy
Company Owes Nearly $190,000 in Unpaid Taxes to Inland Revenue
The company that owned the flats, Brine Property Investments, has gone bankrupt, leaving behind unpaid GST and PAYE taxes amounting to approximately $190,000. Additionally, the company owed over $1.1 million to secured creditors, who held mortgages on the two properties, as reported by the initial liquidator’s report.
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The flats available for sale include the renowned eight-bedroom LegenDairy scarfie flat on Duke St and a nine-bedroom flat on George St. Brine Property Investments purchased both properties in 2015 for a total of $750,000, as documented in CoreLogic’s Property Guru database.
The first liquidator’s report indicated that the director and manager of the company failed to provide a satisfactory explanation for the company’s collapse. It stated, “The company was placed into liquidation on December 21, 2022, due to its failure to fulfill obligations to Inland Revenue, including overdue goods and services tax and income tax, along with associated penalties and interest.”
The sole director and shareholder of Brine Property is Chris Brine, a personal trainer based in New Plymouth. When approached regarding the liquidation, Brine redirected the inquiry, stating, “I’m just the financier. I have no idea about the business as Mike Harbott runs that.”
Brine and Harbott have already established a new company, with each holding a 50% share, named after one of the flats up for sale. The new company, Legendairy Property, was incorporated on January 12 of this year. While registered as a residential property investment company, it currently does not own any properties according to CoreLogic records.
The Commissioner of Inland Revenue initially applied for the liquidation of Brine Property in June of the previous year. KPMG was appointed as the liquidator by the High Court of New Zealand at Wellington in December 2022. The liquidation process is being managed by liquidators Elizabeth Keene and Luke Norman, who have been contacted for comment.
The Duke St flat is presently rented out for $1304 per week, while the George St flat is rented for $1575 per week, as indicated in the online property listings. Auctions for both properties are scheduled for July 18. The liquidators’ report mentioned that discussions are underway with a potential buyer for both properties.
According to CoreLogic, the Duke St property is estimated to be valued at $820,000, while the George St property has an estimated value of $710,000.