Sharechat Logo

Trust set up to refinance Dorchester Pacific in 2010 sells final hotel

Wednesday 11th May 2016

Text too small?

Emerald Gisborne Property Trust, the hotel investor set up as part of the recapitalisation of the financier and insurer now known as Turners, says a deal to sell the Emerald Hotel in Gisborne has gone unconditional. 

The trust was formerly known as the Dorchester Property Trust and at the time of its establishment in 2010, owned four hotels estimated to be worth $33 million. The deal to sell the Emerald means that all of the hotels have now been sold. The only remaining assets in the trust is a penthouse and an apartment in the Emerald complex which are being marketed separately. 

Units in the trust are listed on the Unlisted platform and were created when 7,200 Dorchester Pacific debenture holders owed $84 million swapped their debt for the units along with shares in the finance company, three-year interest-bearing notes, and options to buy more stock as part of a deal to keep the company going. 

The sale of the Emerald Hotel is due to be settled on June 14. Total proceeds are expected to be just under $6 million before selling costs or 40 cents a unit. Prior to going into a trading halt, the units were trading at 38 cents. The remaining penthouse and apartment are expected to raise $700,000 before selling costs, and this hasn't been included in the 40 cents a unit figure. 

Management says it expects an initial distribution to unitholders will be made by the end of June.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Meridian Energy monthly operating report for June 2025
July 16th Morning Report
AIA - June 2025 Monthly traffic update
CHI - Q2 2025 Operational Update
July 15th Morning Report
BPG - Blackpearl Acquires US AI Platform to Accelerate Growth
TGG - Response to media speculation
ARB - Annual Meeting Date and Director Nominations
CNU - Q4 FY25 Connections Update
MOVE FY25 Results and Investor Briefing 29 August 2025