The Emerald Gisborne Property Trust, which changed its name from Dorchester Property Trust last August, has sold the last of the 4 properties it held when parent NZX-listed company Dorchester Pacific Ltd ended its moratorium in 2010.
The final sales were of the Emerald Hotel in Gisborne, settled on 14 June, and the remaining properties in the complex, an apartment & a penthouse, settled on 17 June.
Trust management company Paul Byrnes said in a release on the final sales in May total proceeds from sale of the Emerald & Riverview penthouse would be just under $6 million before selling costs, plus $700,000 before selling costs from sale of the remaining apartment & penthouse. The trust will distribute 40c/unit to unitholders next Tuesday, 28 June, and expects to wash up the trust with a final distribution of 3.5-5c/unit around the end of August.
Dorchester Pacific Ltd, renamed Turners Ltd in February 2015 after taking over the Turners Auctions business, entered its moratorium in December 2008 and exited it in August 2010 after stockholders agreed to a capital reconstruction. This involved exchanging their stock for:
- $20 million of interest-bearing secured notes, to be listed on the NZDX market
- $36.6 million of new shares of the same class already quoted on NZDX
- units in the property trust, which would hold $33 million of hotel property assets and was traded on the Unlisted platform, and
- $56.6 million of options to subscribe for Dorchester Pacific shares at 12.5c/share on 15 June 2013.
The earlier sales:
- Queenstown, Goldridge Resort sold for $8 million in May 2015
- Christchurch, Parkview on Hagley, 23 serviced apartments (out of 49 in the building) sold for $3.075 million in July 2015, well below the $5 million they’d been carried on the books at, but matching the revaluation in the March 2015 accounts
- Parkview on Hagley ground-floor commercial space, sold in December 2013 for $4.2 million
- Queenstown, Frankton Arm Apartments, sold for $2.3 million in 2011
1 April 2016: Last of Dorchester trust properties on market
20 May 2015: Dorchester trust secures Goldridge sale
15 May 2015: 2 investors turn heat up on Dorchester property trust manager
11 March 2011: Dorchester signs Frankton Arm sale agreement, cautions on Briggs offer for property trust units
25 August 2010: Dorchester Pacific exits moratorium with $10.3 million of new capital
17 December 2009: Dorchester takes moratorium repayments to 42.5%
Attribution: Trust release.