Is high profile Christchurch property developer Dave Henderson feeling the financial pinch?
Ten days ago right-wing libertarian Dave announced that he was selling two city developments that reportedly have a total sale value of some $ 30 million.
This comes on top of Henderson recently laying off staff from his construction company Montecristo. As well he has ‘slowed down’ work on some developments. This includes his ambitious $2-3 billion Five Miles township located near Queenstown.
As this is happening another major finance company, Dominion Finance, announced last week that it was running out of money and had stopped repaying deposits investors as their investments matured.
Interestingly the global credit crunch now engulfing New Zealand, as well as the slowing property market, means that property developers are struggling to sell property projects and repaying or financing loans.
So property developers aren’t repaying their loans to companies like Dominion Finance who, in turn, can’t repay investors. The majority of these investors are small ‘mum and dad’ investors.
Of course one has to wonder if one of the property developers not repaying their loans just might be that darling of the corporate media and ACT Party pin-up boy, Dave Henderson.