James Smith’s Corner owner in liquidation

Article – BusinessDesk

July 29 (BusinessDesk) – Property developer David Blackmore’s Blackmore Trust Ltd., which owns and manages Wellington’s James Smith’s Corner, has been put into liquidation.

James Smith’s Corner owner in liquidation, Blackmore’s cars on the line

By Paul McBeth

July 29 (BusinessDesk) – Property developer David Blackmore’s Blackmore Trust Ltd., which owns and manages Wellington’s James Smith’s Corner, has been put into liquidation.

The company will continue to operate under the liquidation, which was forced by one of Blackmore Trust’s creditors, and three of Blackmore’s luxury cars were also used as security, according to the first liquidator’s report.

The cars cited are a 1997 Dodge Ram, a 2003 Mercedes-Benz and a 1970 Mercedes-Benz, which are owned by the Bentley Trust. Blackmore Trust took out a loan on the 1970 Mercedes from local porn magnate Steve Crow in March of this year.

Blackmore is known for his collection of personalised number plates, including SATAN, DEVIL, EVIL, WITCH and BLZBUB, which have been on souped up cars sporting the ‘Team Satan’ label.

Blackmore Trust holds land and buildings on Wellington’s Cuba Street, and receives income from the partially tenanted building, though no dollar value was put on the assets.

“We have been advised that the company failed due to a combination of factors including the loss of tenant income due to the reconfiguration of the building and the general economic downturn of the property market,” Jeremy Morely and John Fisk said in their report. “We have not yet sighted the most recent financial statements for the company, although we have received some financial information regarding the company’s operations.”

Blackmore Trust’s future came into question when Wellington-based lender St Laurence Ltd. collapsed last year, though Blackmore rejected claims that would scupper the $3 million redevelopment of James Smith’s Corner.

St Laurence and ANZ National Bank Ltd. hold claims over all of Blackmore Trust’s assets, while Marac Finance Ltd. has security over the Dodge, and GE Finance and Insurance Ltd. can make a call on the 2003 Mercedes.

Inland Revenue has also indicated it will file a claim for outstanding GST and PAYE tax.

Blackmore Trust’s failure adds to Blackmore’s woes, after he was forced to put his Number One Properties Ltd. into liquidation after FM Custodians Ltd., which is acting for the NZ Mortgage Income Trust Group, took possession of 66 Surrey Cres. in Auckland’s Grey Lynn.

FM Custodians is trying to claw back some of the $5.4 million owed in outstanding loans, interest and penalties. FM Custodians is also named as a creditor of Blackmore Trust.

Number One Properties’ liquidator, Steven Khov and Damien Grant of Waterstone Insolvency, is working with FM Custodians to sell the properties, and expects a claim from the IRD for outstanding taxes, according to its first report.

The company’s assets and liabilities were unknown at the time of the report, though ANZ National Bank, St Laurence, and First Mortgage Trust were named as creditors.

(BusinessDesk)

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