Daniel Horrobin has been forced to liquidate three Auckland real estate firms, with millions owed to Inland Revenue. Photo / Fiona Goodall
Three Auckland real estate agencies that traded under Ray White have been placed into liquidation, owing more than $5 million to creditors, including Inland Revenue.
City Realty, City Realty Sandringham and City Realty Wynyard Quarter were placed into liquidation on April 1, with Bryan Williams of BWA Insolvency appointed liquidator of all three related companies.
They were placed into liquidation through a special resolution of sole director and shareholder Daniel Horrobin, a real estate agent who has previously faced Real Estate Agents Disciplinary Tribunal action for auditing breaches.
In his first liquidator’s report on the three firms, Williams said each of the businesses was conducted within separate companies to achieve legal distinction, although requirements for separability may have failed in some instances due to merging of activity.
The report gives some insight into the firms’ demise, with Horrobin’s account of the situation summarised in the liquidator’s report.
“The company [all firms] experienced a prolonged decline in trading performance arising from adverse market conditions. Sales volumes for Auckland central apartments declined materially from pre‑Covid levels.
“Sale prices remained stagnant or reduced, resulting in a sustained decrease in commission income,” the report noted.
“The company’s core market was disproportionately impacted by increased remote working arrangements, the loss of international students and short‑term accommodation demand, and a shift in buyer preference toward suburban and lifestyle locations.
“Consequently, the company’s revenue declined by approximately 48% between the 2022 and 2025 financial years.”
Horrobin told the liquidator the company’s directors had implemented “significant restructuring and cost-reduction measures” in an attempt to save the businesses.
However, revenue pressure continued and cashflow constraints emerged, including the accumulation of tax arrears to the Inland Revenue Department (IRD).
The three companies were ultimately unable to meet their obligations as they fell due, and the companies were placed into liquidation.
Looking at the firms’ state of affairs, assets for all three companies are still to be determined.
City Realty owes the largest amount, $3.6m.
The company has a single secured creditor, Sharp Corporation, although it is still to be determined if the company has any debts owed.
The IRD is owed $1.5m under a preferential claim for outstanding obligations, with a further $2m owed to unsecured creditors. Only one other creditor is listed – Trade Me.
City Realty Sandringham owes $825,171.12, largely to the IRD for outstanding obligations of $417,875.25.
The company has two listed secured creditors, Sharp Corporation and Flexicommercial. The latter holds a claim to all present and after-acquired personal property. Williams is still to determine if any debts are owed.
A further $407,295.87 is owed to unsecured creditors, although none are listed.
City Realty Wynyard Quarter owes $944,560.75, once again largely to the IRD for outstanding obligations of $468,432.27.
A further $476,128.48 is owed to unsecured creditors, with no secured creditor claims listed.
In total, all three firms owe a combined $5.38m to creditors of all classes.
Williams said it is not expected there will be a dividend for any class of creditor, and could not estimate the duration of the liquidation.
Asked to comment on the liquidations, Horrobin told the Herald it was a difficult situation.
“... and given how early things are in the process, I’m not in a position to comment in any detail at this stage. I would, however, be happy to share some perspective once there is a bit more clarity and I am in a better position to do so."
Ray White Real Estate confirmed City Realty was no longer part of the Ray White network, with its franchise agreement terminated in February.
“As the entity is now subject to liquidation processes, it is not appropriate to comment on the specific matters relating to their financial position or past operations,” a spokesperson said.
“We note that these are independent business entities, and their obligations sit with those entities. We will continue to respect the process currently underway.”
Horrobin and City Realty were fined $15,000 by the Real Estate Agents Disciplinary Tribunal back in May 2024 and censured for breaches linked to auditing processes described as “seriously incompetent”.
The licensed company, which operated a trust account that a chartered accountant audits, failed to provide its monthly reconciliations on time for 27 months across three financial years, with some provided more than a year late, according to the decision.
The tribunal said that among the numerous breaches committed over three years were the company’s failure to record deposits received and the paying out of incorrect amounts from the trust account.
In particular, errors occurred on eight separate occasions in the financial year ending March 2020 and nine occasions in the following year.
City Realty was charged in August 2023 with wilful or reckless misconduct and, in the alternative, misconduct that was “seriously negligent or seriously incompetent” in that it failed to meet required standards.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.