Emerald Gisborne completes asset sales, affirms 40c payout in June, final payment in August

Tuesday 21st June 2016

Emerald Gisborne Property Trust, the hotel investor set up as part of the recapitalisation of the financier and insurer now known as Turners, says it has completed the sale of its remaining assets. That will allow it to affirm a distribution at the end of this month and a final payout in August.

The sale of the trust's Emerald Hotel settled on June 14 and the remaining properties in the complex, an apartment and a penthouse, have subsequently been sold and settled, said the Turners-owned Emerald Gisborne Property Trust Management, the trust's manager.

The trust plans to distribute 40 cents per unit on about June 28 and make a final distribution, likely to be between 3.5 cents and 5 cents a unit, in late August, subject to finalising outstanding creditors, debtors and administration costs.

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, along with the penthouse and the apartment means that all of the hotels have now been sold.

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. Emerald Gisborne units last traded at 38 cents on April 27, valuing the trust at $5.7 million.

Turners shares rose 1.7 percent to $2.87 and have declined 4.3 percent this year.

BusinessDesk.co.nz

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