Wellington lawyer Mike Garnham has sold his high rise tower as he fights the BNZ in respect of loans over his property empire.
The loans amount of around $6 million and either expired or were called up last year, although Mr Garnham is fighting the bank on various fronts in respect of the legality of their demands.
He made a fortune with the development and sale of the Deloitte building on Wellington’s Customhouse Quay but also owns several other buildings, including the ASB building he has sold now for an undisclosed price to Wellington property magnate Mark Dunajtschk, one of the wealthiest men in Wellington and the country.
The building sold was previously owned briefly by failed property magnate Terry Serepisos and was snapped up by Mr Garnham for $22 million. Mr Garnham also owns Wanaka farm properties and previously also owned two Cessna Citation jets.
BNZ’s summary judgment application has, however, been opposed, and last month, Mr Garnham applied for orders that two bank staff be required for cross-examination, as well as directing the bank to provide more evidence in discovery.
This matter was heard ahead of the summary judgment application but Associate Judge Warwick Smith dismissed Mr Garnham’s applications.
The judgment says Mr Garnham personally guaranteed the lending to one of the defendants, Michael Spackman, and he was also a director of other entities being pursued.
According to the NBR, the BNZ’s summary judgment claim the defendants say they were misled when they signed refinancing documents relating to two facilities in July, 2013, believing they would continue on an interest-only basis, without any obligation to make principal repayments.
The alleged error was only discovered some months later, after an earthquake had damaged Mr Garnham’s workplace.
BNZ and Mr Garnham both dispute each other’s account of meetings between them but the bank argued it is entitled to have its summary judgment application heard promptly without any cross-examination or discovery beforehand.
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