19-02-2008

Blue Chip landlords advised to terminate leases

NZ Herald

1. News
2. 2008
3. February

Urgent notices are being issued to investors who bought properties from real estate businesses associated with Blue Chip, telling them to terminate their lease deals.

Nick Wevers and Tony Woodworth, of First Street Property Management, are telling landlords to act quickly and warning them they might lose their rent.

Many of the Blue Chip-associated companies are in liquidation, Wevers and Woodworth say.

On January 23, Neil Bell, chief executive of Diem Ltd - Blue Chip's master franchisee in New Zealand - announced First Street had taken over all short-stay properties and Harcourts had taken the long-stay rentals.

Jeff Meltzer, liquidator of 19 companies, including Bribanc Property Group, said that property management could not be handled by his firm.

Wevers and Woodworth said yesterday rent still being paid to Blue Chip-related companies could be seized by the liquidators.

Some of the money First Street had already collected in the last few weeks since taking over the business on December 15 could well be claimed by liquidators, they said.

Tags: nick wevers - tony woodworth - blue chip - neil bell - diem ltd - jeff meltzer

Source: NZ Herald