Forum Archive Index - November 2000

["Mike Bielski" <terra1@ihug.co.nz>]

Hi All,

Savoy Equities announced that transfer of its joint venture interest in the
Hyatt Regency Auckland Hotel has reduced its funding liability while leaving
it in a position to profit from the development, the company's CEO said
today.  He was commenting on yesterday's (15 November) New Zealand Herald
story on the share transfer announced last month (21 October).  CEO, Kerry
Haycock, said the value of the shares in the company, which owned the
property, and the value of the property itself may have been confused in the
minds of some Herald readers.  "Savoy Equities purchased a 47.5% share in a
joint venture owning the Hyatt Regency Hotel Auckland last year for $3.5m",
he said.  "We've now transferred that to Hudson Pacific Group along with our
contingent liability for further pre-development funding, in exchange for
Hudson Pacific shares".  "While the transfer of our interest frees us of
exposure to further pre-development funding requirements, we're in a
position
to benefit from the development through a 9% share in Hudson Pacific".  The
value of that interest at this week's share price and exchange rate was
$3.6m.  Mr Haycock  said the difference between the $40m paid for the
property by the joint venture and the partner's equity holdings was
borrowing."  Mr Haycock said the Herald had reported incorrectly that Savoy
Equities was 58% owned by Jihong Lu.  Mr Lu had no direct holdings in the
company.  However, entities connected with his family trust held a total of
19.6%._
End

Bye All


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