Property Holdings director buys up

By Chris Hutching

Friday 30th November 2001

Australasian Property Holdings (APH) executive chairman Tracey Lake is planning to buy a parcel of shares at a premium in the hope it may lift confidence in the listed company's convertible share issue.

The proceeds will be used to advance development of the company's Katoomba golf resort west of Sydney.

Mr Lake this week held a series of investor briefings, which fortuitously coincided with the deal in which he will buy shares from two longstanding shareholders at 15c a share, taking his holding to 40% and requiring shareholder approval under the takeover code.

The timely deal may help lift the share price from the 9c where it has been languishing in recent months after listing on the New Zealand Stock Exchange a year ago at 24c.

These prices compare with the 20c conversion price in December 2002 and December 2003 of the convertible cumulative redeemable preference share issue.

If all shareholders took up the issue it would raise about $4 million but Mr Lake accepts the company will probably get somewhere between $500,000 and $1 million. His own contribution would be $400,000, he said.

Mr Lake said there had been delays in obtaining the numerous regulatory approvals but the company was ready to begin construction of the first 12 villas in stage one of the development, which he expected would result in sales to would-be buyers.

But shareholders were mindful of the last capital raising via a rights issue 15 months ago, raising $514,451, when directors gave positive reports about progress of the golf resort.

APH had development agreements with the golf course and with the local district council to develop the golf course and to buy blocks of land around the periphery for holiday home and hotel development (contingent liabilities in relation to this arrangement are $2.6 million). Settlement of the first development block with potential for 66 dwellings took place in June, lifting total debt to $2.9 million.

There are about 4000 shareholders, some holding scrip from the company's former existence as listed Petro Taranaki and Leisure Lea Corporation, which left APH with a legacy of tax losses of about $8.5 million in Australia and $10 million in New Zealand.

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