Mining entrepreneur Nik Zuks has put four Perth properties up for sale as he deals with the sharp slump in the iron ore market, which has slashed the value of his flagship company Bellzone Mining plc.
Mining entrepreneur Nik Zuks has put four Perth properties up for sale as he deals with the sharp slump in the iron ore market, which has slashed the value of his flagship company Bellzone Mining plc.
Mr Zuks has extensive property holdings at Bedfordale, in the hills east of Armadale, and is looking to sell four of those properties through Mack Hall Real Estate.
He also became embroiled in a legal dispute this month, after failing to complete the planned 2013 purchase of two additional properties in Bedfordale.
Property investor Ross Williamson obtained a summary judgement in the District Court against Mr Zuks, over the failure of his company, Moreau Mining Pty Ltd, to complete the $1.1 million purchase of a property at 780 Albany Highway.
The judgement required Moreau to pay $131,000, which was the difference between Mr Williamson’s original sale price and the subsequent sale to another buyer, plus costs.
Mr Williamson told Business News the money was paid on January 21, eight days after he obtained the summary judgement.
Around the time Mr Zuks had planned to buy Mr Williamson’s property, he also planned to buy a race horse property at 752 Albany Highway, formerly known as Balmoral Park.
Burgess Rawson is now marketing the 16-hectare property on behalf of insolvency firm KordaMentha.
Landgate records show that Mr Zuks owns eight nearby properties in the Bedfordale area.
Most of the properties were bought in 2006 and 2007, for a total price of $19 million.
Mack Hall is marketing four properties on behalf of Mr Zuks, including 688 Albany Highway, which adjoins the race horse property at 752 Albany Highway.
The property at 688 Albany Highway comprises 61ha and has seven houses.
Mr Zuks came to prominence in the 1990s as managing director of Kingstream Steel, which had ambitious plans to build an iron ore mine and steel plant in the Mid West, at Oakajee.
After Kingstream, he re-emerged as managing director of Bellzone Mining, which owns early-stage iron ore projects in Africa.
Bellzone completed a successful listing on the London Stock Exchange’s Alternative Investment Market in 2010 and, at its peak, Mr Zuks’ stake was valued at $475 million.
However, like many aspiring iron ore miners, Bellzone has fallen on tough times.
Mr Zuks raised about $16 million in 2012 from the sale of 50 million Bellzone shares.
He retains 245 million shares, which are worth about $2.5 million, based on the last trading price.
Bellzone shares have been suspended since last September, as it seeks to raise additional capital.
Business News approached Mr Zuks, Mack Hall and KordaMentha for comment.
