Unit owners join forces over rent

Overseas investors owed rental income on rooms in Wellington's $100 million Holiday Inn are joining forces with a New Zealand group to try to get their money back.

Most of the hotel's 280 units were sold to individual investors, many from as far afield as the United States, Singapore, Malaysia and Australia.

Last year investment manager Galway Tourism Investment Group, part of Nigel McKenna's Melview group which developed the hotel, suspended guaranteed rental payments to investors citing hard economic times.

Since then it has made payments based only on the income generated by the occupancy of the individual rooms.

Roger Chapman, a Wellington lawyer who is acting for a group of investors, said this had left them out of pocket.

"As far as I'm aware there are still substantial arrears owing."

To read the full NZ Herald article click here

Posted: 14 Jan 2010

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