30 Aug 2011

Serepisos to sell property as he battles bankruptcy

8:38 am on 30 August 2011

The chief executive of the Wellington branch of the country's largest real estate group says a managed sell-off of developer Terry Serepisos's assets would be good for the property market.

Bankruptcy proceedings against Mr Serepisos were adjourned on Monday so he can organise the sell-down.

The developer says that if creditors agree he will put more than $230 million worth of residential and commercial buildings in Wellington back on the market.

A property investors' group has said that there are probably not enough investors in the market to pick up the properties.

However the head of Harcourts in Wellington, Eliot Falconer, says his company has sold about 12 residential properties belonging to Mr Serepisos in the past year.

The properties have have achieved "reasonably good sale prices" and have been integrated into the market well.

Mr Falconer says there's a shortage in Wellington of non-apartment residential property.

He understands Mr Serepisos's residential property portfolio is worth about $130 million.

Capital Property Investors Association president Alistair Gillespie says seems that there are not a lot of buyers or investors out there at the moment, so not many sales are being made - other than in Auckland.

He says if Mr Serepisos's residential properties flood the market it could down the cost of renting and make it harder for people to let out properties.