Forum Archive Index - July 2000

[Brian Gale <brigale@i4free.co.nz>]

Many thanks, Warner.

  I am sure you are right - that they will get their act into gear in the 
not too distant future.  They have an impressive list of tenants in the 
properties they own e.g.

         Auckland:-  Telstra Business Centre,  Simpson Grierson,  Fletcher 
Challenge, Colmar Brunton, Citibank, Guardian Trust, Fujitsu Centre, etc

         Hamilton:-  ASB Bank & Deka

         Wellington:-  Ministry of Commerce, Telecom Tower, Castrol House, 
Price Waterhouse Centre,
Hitachi Data Systems, Fujitsu Centre etc.

         Christchurch:-  Forsyth Barr House, CLEAR Centre, etc.

Plus good properties in Australia.

If they can get their finances sorted out they must surely come back into 
favour which will be reflected in  the share price. I believe there was 
some talk of a takeover at one stage but with SEA Holdings having 54.8%, 
that is perhaps unlikely.  It is interesting that GPG have a 2.89% stake 
which makes them No 3
on the shareholder list.

As you say the current share price at 17.5 cents is at a hugh discount to 
NTA of  70.96 - doesn't seem to make sense does it ?

Regards
Brian


At 17:01 17-07-00 +1200, you wrote:
>Hi Brian, I just like the recovery potential from current levels, not
>tomorrow but I am going to continue watching it find its level from sharp
>declines this year.
>The half year report was quite positive for the long term if you read into
>it.
>Cashflows increased substantually
>Shareholder Equity increased
>They are really trying to increase the quality of the portfolio by selling
>off poorer ones (at a loss)
>Program to reduce debt using $50m cash in bank.New building in Sydney 70+%
>full.
>Assets $1,362,300 vs Liabilities $677,600m gives a Debt/ Equity ratio of 51%
>(not too bad)
>The losses stem mostly from writedowns so the key is the comm property
>turnaround .esp in NZ (have we seen the bottom)
>Interest rates are levelling off Worldwide and here. Historically 8-9% is
>still quite low.
>120 new leases signed last year and an above avge Occ rate must be good.
>Once the writedowns stop TTP could be back to profits very quickly.
>Queenstown seems to be a good leader and indicator and often preempts the
>market (up ave 18% in QTN in last year)
>Its one that I would buy and put in the drawer for say 5 years.huge discount
>to NTA.
>regards
>Warner
>
>
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