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Independent valuation shows ANZ sold house for less than market value to CEO's wife

Contributor:
Fuseworks Media
Fuseworks Media

KiwiSaver manager Simplicity today released an independent valuation of the house sold by the ANZ to the wife of Chief Executive, David Hisco.

The house, purchased by ANZ subsidiary Arawata Holdings in 2011 for $7.5m, was subsequently sold in 2017 for $6.9m to the wife of the ANZ CEO David Hisco. At the time of sale the house had QV value of $10.75m.

An independent valuer has placed the valuation of the property at the date of sale at $11 million. See below for the full valuation.

Simplicity commissioned the independent valuation after the refusal by ANZ to release valuations used to validate the sale price of $6.9m.

"The house was bought and sold by the ANZ using shareholder funds, which includes the money of many KiwiSaver members" said Sam Stubbs, CEO of Simplicity. "It was sold for a price well below it’s value at the time, as assessed by QV, and now an independent valuer. Given the sale was between related parties and was not disclosed as it should have been, it is very suspicious and needs to be justified to shareholders" said Mr Stubbs.

"The ANZ is our largest bank, and most profitable company. It needs to be held to the highest standards of disclosure and transparency," he said. "Not disclosing the sale of the house to shareholders, and refusing to disclose the valuations it claims it has, is far from meeting those standards. This goes to the very culture and conduct of the organisation," said.

The current CEO, Antonia Watson, is a signatory to the sale, but she is not forthcoming with the valuations or any rationale. This raises serious questions," said Mr Stubbs.

"The ANZ’s refusal to release valuations is not in the interest of shareholders, including the millions of KiwiSaver members who own, by our estimate, over $100 million of shares in ANZ," he said.

Simplicity has issued Official Information Act requests for the ANZ valuations to both the FMA and Reserve Bank. Simplicity has also provided this valuation to the FMA and RBNZ to assist in their deliberations.

The valuation attached assesses the property value at the time using council records and comparable sales data. The property has not been physically viewed to achieve this valuation, as it was assumed access would be denied. However, in preparing the valuation, the valuer did not consider physical inspection necessary to achieve an independent assessment of its value at the date of sale.

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