Westpac has effectively ended hopes for a NZ$600 million development of the Rhubarb Lane project in Auckland, forcing the mortgagee sale of the land for the project, the New Zealand Herald reported. The 20 building project was on a site on the corners of Cook, Wellesley and Nelson streets in central Auckland and was owned by developer Jamie Peters of the Starline Group. "The Herald understands Westpac has a NZ$40 million mortgage on Mr Peters' freehold interest, and a similar mortgage on the leasehold. This mortgage is not for sale. The council sold the works depot about eight years ago for about NZ$6 million. It was sold to Starline Group about four years ago for NZ$28.5 million," it reported. "Total debt on the land is now believed to be about NZ$135 million," it said. Westpac is the first mortgagee, but other funders are involved, including St Laurence and Babcock and Brown. Rod Petricevic's Bridgecorp had been one of the original funders of the project. * This article was first published in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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