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A prominent Roys Bay property once earmarked for a retirement village and a body  corporate apartment complex is being sold by a mortgagee.

Four Bayleys real estate agents acting for the mortgagee confirmed in a media release the partially developed 1.8 ha property at 2 Kelliher Dr and 1 Ashgrove Ln has 10 dwellings on it, in various states of completion.

These are not included in the sale.

That leaves 1.4 ha for sale, with a scheme plan in place to develop at least 63 houses.

However, district plan rules could allow a new developer to increase the yield or do  something entirely different, lead agent Steve Rendall of Auckland said.

Meadowstone resident and neighbour Dave Evans said when contacted he felt sorry for any people who might lose investments in Roys Bay Estate Ltd’s retirement village project .

He was pleased there might be an opportunity for a new owner to do something different.

“We are very hopeful,” Mr Evans said.

The site is at 2 Kelliher Drive, Wanaka, in the Meadowstone subdivision, and Stoney Creek runs through it.

The site has a long and complicated consenting history.

In 2008, Mr Evans was one of more than 100 neighbours who formed a group called Sensible Development 4 Wanaka to oppose Roys Bay Estate Ltd’s plans.

Mr Evans said while not opposing retirement living, concerns included size, scale, architectural fit, increased traffic and parking problems.

The Otago Regional Council also raised issues about the flooding risk from Stoney Creek.
Over several years, proposed unit numbers were gradually reduced from the 97 originally proposed to 63.

When a district plan zone change loosened development criteria, neighbours became concerned the proposal would be like any other apartment block, rather than a retirement village.

Roys Bay Estate Ltd is associated with Tony and Catherine Hannon of Auckland and Chris Holmes of Waiheke Island.

Attempts to contact them have not been successful.

Roy’s Bay Estate manager Doug Walker has declined to comment.

The 1.4 ha block was advertised for sale on March 12, and tenders close with Bayleys on April 12.

The largest lender to Roys Bay Estate is Senior Trust Retirement Village Ltd, a specialist lender in the retirement and aged care sector.

Attempts to contact executive director John Jackson have not been successful.

Mr Rendall said he discussed the query with his client, but the client did not want to make a statement.

Senior Trust’s publicly available March 2021 income generator annual report reveals a $14 million loan facility with Roy’s Bay Estates, with $13 million drawn at the time of the report.

The report noted Senior Trust was Roy’s Bay Estate’s largest secured lender and there was a prior ranking encumbrance registered in favour of a statutory supervisor [statutory supervisors are licensed by the Financial Markets Authority and are appointed by an operator upon registration of a retirement village].

According to the report, registered valuer Eyles McGough had estimated the total estimated secured collateral as of March 31 2021 was $20 million, representing a loan to value ratio of 63%.

Senior Trust’s auditor William Buck Audit NZ said in a document attached to the report that Senior Trust has made seven significant loans to various developers, totally $48.4 million to various developers, of which the Roys Bay Estate loan was the largest.

The auditor said there was “a significant risk of recoverability of these loans”.