By Chris Hutching
Friday 15th March 2002 |
Text too small? |
The KPMG Centre, owned by the Waltus Prime Properties syndicate, was recently refinanced in a deal that would increase the equity of the syndicate, he said. The refinancing was required because Commonwealth Bank was unprepared to roll over its existing loan.
An attempt to raise money from investors late last year failed after the Securities Commission found fault with a prospectus and ordered that monies be sent back.
So a competitive banking tender was held before Christmas and the successful tenderer was WestpacTrust, Mr Hodge said.
During the recent months of uncertainty, dividend distributions to investors were suspended but they are unlikely to resume for some time.
"We have a principal and interest facility rather than interest only loan. It's not an inability of the company to pay a distribution to investors - it's just that those distributions are being used to retire debt, which will increase equity in the company," Mr Hodge said.
Auckland's central business district office market has yet to recover from the Asian crisis, according to Mr Hodge. Since the KPMG Centre was bought in 1998 for $51 million it has declined in value to $42 million.
But there may be good news on the horizon for syndicate investors if the Auckland office market continues to improve on figures released this week by the Property Council. They reveal the five-year annualised returns from Auckland office buildings was 5.18% last year compared with Wellington's 6.3%.
The Property Council described the returns as "strong and reliable."
No comments yet
The Warehouse Group - Proposed Scheme of Arrangement
The Warehouse Group - Proposed Scheme of Arrangement
Winton announces timing of its Annual Results
Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report
VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go