By Chris Hutching
Friday 23rd June 2000
|Text too small?|
Over the past year the former orchardist was forced to sell its properties faster and for lower prices after the trustee of the RSB, Tower Trust, last year appointed receivers to the properties secured to the scheme.
The sales are nearly complete except for one 41ha block of land near Christchurch airport called the Noble property, also secured to the scheme.
Managing director Tom Kain said a joint-venture partner was lined up for the Noble property and a first mortgage was being arranged to satisfy the amount owed to the RSB.
The structure of the deal is similar to others involving blocks at Johns Rd, Wigram and Shands Rd where Apple Fields retains a joint venture interest.
"Essentially we sell the interest in the land to investors who supply the funding and we complete rezoning plans and share part of the final profit."
Once the sale of the Noble block is completed the company will have no debt compared with $75 million two years ago, no fixed assets, four executives and $50 million in tax losses available against future income.
Mr Kain said the tax losses might be regarded as contingent assets. There were no plans to delist from the Stock Exchange.
A possible windfall profit may come from a pending court ruling about the $13 million disputed sale of the Styx block of land on the northern periphery of Christchurch.
No comments yet
MARKET CLOSE: NZ shares up, Mercury and Genesis gain while Xero flat on Drury selling
NZ dollar headed for 1% weekly fall as commodity prices decline
NZ households rein in house-price expectations in latest RBNZ survey
Precinct raises $100 mln in oversubscribed bond, rate set at 4.42%
Speirs Group turns to annual loss, foregoes dividend, amid rivalry, higher costs
Electricity and dairy prices drive rise in 3Q input and output prices
Manufacturing activity dips in October, too soon to see impact of new government: PMI
Wellington Drive downgrades 2017 guidance on weaker Q3, maintains 2018 profit forecast
Fletcher's building products head Matt Crockett resigns
Xero chief Drury boosts stock liquidity with $94.5 mln share sale as exchange switch beckons