Archive | Gainz

Capital Properties boosts surplus 17.8%

Unrealised revalations add $18 million

Capital Properties NZ Limited increased its March year aftertax operating surplus (before revaluations) by 17.8% to $15.9 million.

Unrealised changes in investment properties added $17.9 million to the surplus to give a $33.8 million net surplus, 5 times the $6.8 million last year.

Chief executive Nick Wevers said the increase in operating surplus was due mainly to increased income from some properties and reduced interest costs as a result of debt repaid from the proceeds of last year’s 1:3 rights issue.

The valuation rise resulted from an increase of $10-15/m² in market rents and a cut of about 0.25% in market capitalisation rates, mainly in the Wellington portfolio.

Earnings/share fell from 10.9c to 10.2c/share, calculated on the operating surplus after tax but before revaluations.

Capital Properties also announced a 4th quarterly gross dividend of 2.25c/share, including 0.35c imputation credits. Gross dividends for the whole year total 9.125c/share, including 1.425c imputation credits. This gross dividend represents a 10.1% yield at the current share price of 91c.

25% rent rise in Bowen House

Mr Wevers said the company had settled a review of rent paid by the Parliamentary Services Corp on 12,118m² of office space & 55 parking spaces at Bowen House, Wellington, resulting in a 24.8% increase, from $2.14 million to $2.67 million/year, effective 16 December 2002.

Capital Properties remains on the lookout for investments but will work on adding to its Thorndon portfolio in Wellington in the meantime.

“Buoyant property markets in Wellington & Auckland in the last 12 months have not been conducive to purchasing additional good-quality property at prices that Capital Properties believes represent good long-term value for shareholders. While opportunities to acquire are limited, the company will focus on adding to the portfolio through building on the company’s 3 Thorndon development sites,” Mr Wevers said.

He expected Auckland & Wellington’s leasing markets to remain strong this year.

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Pacific Steel does deal with workers to overcome power cost rise

Fletcher Building still expects $310-320 million full-year earnings

Pacific Steel will swap 2 weekdays for weekend work, without penalty pay rates, until power supply & pricing become more predictable.

2 other Fletcher Building Ltd subsidiaries have also been looking for ways to reduce the impact of power costs rising to uneconomic levels. But Fletcher Wood Panels and Golden Bay Cement will maintain production volumes, continuing to incur big increases in their energy costs.

Pacific Steel has secured power supply contracts at reasonable rates for the modified working arrangements, but said this would result in reduced production & cessation of exports outside Australasia.

Fletcher Building’s managing director, Ralph Waters, expressed great consternation about the sharp rise in power costs when he released the company’s half-year result, and talked of the need for reliable supply at economic prices.

His complaint was real, but it was within the power of the Fletcher Challenge conglomerate — broken up before Mr Waters’ arrival in New Zealand — to do some thing about it. Fletcher Challenge sold its energy business to Shell, controlled a large share of Natural Gas Corp and was introducing energy efficiency schemes at various conglomerate businesses, improving synergy.

Mr Waters said at result time the strength of the NZ dollar and sharp power price rises would have a 2nd-half negative impact on operating earnings before unusuals of about $10 million compared to the 1st-half results. But the spot price for power had been considerably worse than envisaged at that time.

If the cost of power stays at March levels, Fletcher Building’s 2nd-half earnings will suffer by another $10 million, the company said.

Despite this, Fletcher Building expects its operating earnings before unusuals to be in the $310-320 million range for the June 2003 year, providing there is no other material adverse change and power pricing & supply don’t deteriorate further. 2002 earnings before unusuals were $205 million.

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Dakin moves with Colonial to Macquarie

New-look trust will be in joint venture with Macquarie Goodman Industrial

John Dakin has been appointed chief executive of the newly formed Macquarie Goodman Property Management NZ Ltd.

The new management company will run the former Colonial First State Property Trust, renamed the Macquarie Goodman Property Trust, which Mr Dakin had been running for Australia’s Commonwealth Bank.

Mr Dakin went to Australia after quitting his role as director of the NZ Property Council 3½ years ago, landed a job at Colonial and stayed on board when Commonwealth took control.

He returned to New Zealand a year ago after the departure of the Colonial trust’s manager, Lloyd Cundy.

Macquarie Goodman Management Ltd, listed in Australia and the parent of the New Zealand management company, announced its Colonial takeover on 16 December.

It bought the management company from Colonial (Commonwealth) and 20% of the trust from Sovereign Assurance Co Ltd, said it planned to rationalise New Zealand portfolios and set up joint ownership of New Zealand assets by Macquarie Goodman Industrial Trust (listed in Australia) and Macquarie Goodman Property Trust (listed in New Zealand).

Brett Schofield has been commuting from Sydney to head Macquarie Goodman Industrial’s New Zealand business.

Earlier stories: Units sell at 94c as Macquarie Goodman takeover gets OK
Asset sales cut Colonial revenue & profit
Colonial buys Kiwi Income management company
Colonial sells Wellington HQ as value keeps spiralling down
Colonial presents another dismal report

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Kiwi Income offer fair, with improved future for KDT investors, says appraisal

Tower value down to $200m, bid worth $2.60-275/unit

PricewaterhouseCoopers accountants have found Kiwi Income Property Trust’s three-for-one offer to Kiwi Development Trust unitholders fits into the price range which makes it fair — a conclusion the same accountants did not reach when Kiwi Income offered to take units off investors’ hands in June 1999.

In the earlier offer, investors selling out after paying only the first instalment would have lost 35c of their 75c.

Those who hung around to pay the full $3 stand to lose about 30c in the new offer — not a lot of difference, but in the meantime perceptions of the asset have changed and the loss now seems not so bad.

On both occasions the offer has been made at a premium to market.

A sticking point in 1999 was that the decline in value of KDT’s asset, the Royal SunAlliance Centre (above) between Fort and Shortland Sts in Auckland’s central business district, was still not fully recognised.

Valuation 19% down on prospectus

With the office tower completed and tenants signed or nearly signed for 88% of it now, the chances of getting the numbers wrong are greatly reduced. So the latest valuation of $200 million, 19% lower than the end-1997 prospectus projection of $247 million, is likely to stick.

Tenancy incentives still likely to be required have already been factored into the Telfer Young (Auckland) valuation done for PricewaterhouseCoopers’ offer appraisal.

The project on the old LD Nathan head office site was the creation of the Kiwi Income management team, headed by joint managing directors Richard Didsbury and Ross Green.

When they and their advisors did the numbers in 1997, the commercial property market was looking perkier, they were first of more than a dozen potential office development sites to get the green light, and their completion timeframe fitted perfectly with lease expiries of numerous major tenants.

What they couldn’t take into account was the Asian economic crisis, which changed the course of Asian investment and left New Zealand far less buoyant for the next two years.

They were also more optimistic about the commercial property market, and particularly the value of prime office space, than New Zealand sharemarket investors, who maintained a hefty discount on most property stocks throughout the 90s and into 2000.

The continuing spectacle of collapsing building companies shows construction industry margins remain too tight for safety. In this case the construction bill has come in on budget, with additions for some changes and the extra costs incurred in slower leasing.

But the 19% decline in value of KDT’s asset means it has been erected for a couple of million dollars more than current valuation.

Capital growth inhibited

The leasing scenario is for little added rental value over the next decade, inhibiting capital growth until the centre has become an old building, no doubt competing against newer and better products.

Investors who took part in the float and paid all three instalments on the units parted with $3/unit, compared to anticipated completion asset backing of $3.15/unit. If they agree to be bought out, they will get about $2.70/unit in the form of Kiwi Income scrip plus a KDT dividend, expected to be 6.9c gross and 5c net for investors on a 33% tax rate.

Against that 10% capital loss, the appraisal report issued yesterday indicates their future as Kiwi Income unitholders is likely to be slightly better than in a continuing KDT.

New valuation cuts Kiwi Income NTA to 99c

There are benefits for Kiwi Income in the takeover, such as greater asset value and attention from institutional investors. Based on TelferYoung’s valuation advice, the PricewaterhouseCoopers team found there would little change in Kiwi Income’s fully diluted net asset backing, which TelferYoung put at 99c compared to a combined book value of $1.05.

They expected investor income would dip in 2002, but after that distributions should be slightly better from the combined trust than from Kiwi Income without KDT. One unknown in that scenario is that the assessments have taken no account of the rest of Kiwi Income’s business, which would not be standing still.

The Sylvia Park project, for one, should start during the period of the financial projections, incurring cost but also raising gross assets, hopefully raising returns to investors and possibly also requiring additional equity.

But calculations that include those potential factors are equally obviously beyond the scope of the present exercise.

As Kiwi Income already controls nearly 40% of KDT and the management function at both trusts is not readily contestable, small investors really have no options but to go with the flow, which should improve their return.

Monumental appraisal

The appraisal report on the Kiwi Income offer is a monumental, thorough document, with value for investors outside the immediate scope of the offer for its property sector overview as well as the insights into the prospects of the two Kiwi trusts.

A key point relating to the bid, and the trusts’ future, is that, “while Auckland office vacancy rates fell marginally in the first half of 2000, they remain relatively high at around 15%. Wellington’s vacancy rates have remained steady at around 8% while Christchurch rates are around 18%. These relatively high vacancy rates have resulted in rentals remaining fairly flat overall.”

The appraisal report adds that tenant demand is increasingly favouring prime over secondary space, large over small floorplates and premium locations. It notes that lower grade buildings are becoming harder to lease, except at substantially discounted rents, but that rents in premium buildings remain “stable to strong.”

The total project cost for the Royal SunAlliance Centre is given as $201.6 million at December 2000, including $12 million still to be paid.


The document makes it clear who pays for incentives: “Should it be necessary to provide incentives in order to lease the balance of uncommitted space, then it is the policy of KDT management to recover these incentive costs by increasing contract rentals above the valuation net effective rentals.”

The first 80% of leasing (it’s now at 88%, should soon be at 90% and is expected to be fully leased by March 2002) is at an average net contract rent of $419/m². Extending that average over the whole 37,800m² net lettable office area would give a rental return of $15.84 million.

Of course, it’s not that easy. KDT’s rent forecasts show a rise from $6.2 million in the year to March 2001, to $15.9 million and then to $17.8 million in the year to March 2002, but incentives reduce the actual receipts up to March 2002.

“The cost of rent-free occupancy periods has been capitalised into the cost of the building and therefore does not affect the income available for distribution,” the appraisal report notes.

Valuation changes

The original building valuation by CB Richard Ellis, for the 1997 prospectus, used a 7.5% cap rate on initial rent for its $247 million valuation, with an assumption that tenants would get only nominal incentives.

For its valuation last October, down to $203 million, incorporation of actual incentive arrangements reduced net effective rents, and rental growth estimates were also reduced. TelferYoung’s valuation for the appraisal report was $200 million.

The differences between the two firms’ valuations are minor. CB Richard Ellis applied a 7.6% yield to the first year’s rent, TelferYoung 7.2%. For an assumed realisation value in 2009, CB Richard Ellis applied an 8.25% cap rate for a $240 million valuation, TelferYoung 7.83% for $230 million.

PricewaterhouseCoopers, in assessing the value of KDT as a going concern, and of its units, attributed no value to the $20 million of accumulated tax losses because the trust is unable to attach imputation credits to dividends, which means investors pay tax.

Deducting $21.4 million of capitalised management fees and overheads, and $56.3 million of debt gave a net equity value of $122.3 million, or $2.55/unit. For a ± $5 million range, that gave a value of $2.44-2.65/unit.

Sale valuation would have discount of up to 10%

For a sale valuation of the building, CB Richard Ellis suggested a discount of up to 10%, “given its narrow market appeal, together with the current property investment climate.”

On a building value of $180-190 million, the appraisal report showed net present value of KDT at $120.9-130.1 million, equating to $2.52-2.71/unit. In a discounted cashflow analysis, the report showed a unit value of $1.93, and an income-based value range assuming different dividend rates of $1.72-2.31.

By preferring an asset-based valuation approach, PricewaterhouseCoopers concluded the KDT units had a current fair market value of $2.40-2.70.

Kiwi Income has two classes of units and 9% notes with final conversion in September 2003 at $1.25. If Kiwi Income gets its required 90% acceptance from KDT investors, they will get a third class of unit (until their final KDT dividend payment).

Kiwi Income’s weighted average ordinary unit price in December, and for the 12 months preceding notice of its offer, was 90c. PricewaterhouseCoopers assessed the value of the new units for KDT investors at 86c, by a variety of methods.

Fair value for the Kiwi Income offer consideration differs from the KDT unit valuation by inclusion of the 5c post-tax KDT dividend. Using a value range of 85-90c for the new Kiwi Income units, plus the dividend, PricewaterhouseCoopers reached a fair value of $2.60-2.75 for the consideration. That range represents a 21-29% premium on KDT’s December market price.

Looking at Kiwi Income

Kiwi Income’s portfolio book value at September 2000 was $650.4 million, but TelferYoung cut it back to $627 million in December. By also valuing the Royal SunAlliance Centre at $3 million less, TelferYoung produced a combined portfolio value of $827 million.

A pro forma consolidated financial position for the combined trusts shows total property assets at $825 million, total investors’ funds (including notes) at $537 million, the ratio of debt to total assets at 32.6% (with a limit of 35%, which management want to raise to 40%), and fully diluted net tangible assets of 99.1c/unit, compared to $1.05/unit on existing book values.

Kiwi Income didn’t want to disclose detailed financial projections, but the appraisal report shows projections of total income rising from $72 million in 2002 to $77.2 million in 2006, manager’s fees and overheads rising 5% from $8.1 million to $8.5 million, ebit rising from $63.9 million to $68.7 million, and net income after tax of $38.9 million, rising to only $39.2 million, with three better years in between.

PricewaterhouseCoopers’ estimate of the gross distribution on Kiwi Income’s ordinary units with and without the KDT acquisition shows a better year without in 2002 (9.3c versus 9.1c), 9.2c either way in 2003, and a 0.1c gain thereafter for the combined trust, with an estimate of 9c/unit.

In an assessment of price:NTA across the listed property market at 18 January, PricewaterhouseCoopers found only the AMP NZ Office Trust at a premium — 17%. Colonial First State Property Trust was next best with a 4% discount, Capital Properties NZ Ltd was at 8%, the average was a 19% discount and the weighted average by market capitalisation was a 10% discount.

KDT was at a 14% discount, Kiwi Income 16%. The other listed stocks were Property For Industry at 13%, National Property Trust at 19%, Newmarket Property Trust at 31% and Trans Tasman Properties Ltd at an 82% discount.

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Westfield adds 3 malls, profits in 1 onsale to Centro

Iniial yields 6.75-7.95%

Westfield Trust has bought Commonwealth Funds Management out of 3 Australian shopping centres, then sold 1 of the centres to Centro Property Group.

Westfield and Commonwealth jointly owned the Westfield Belconnen in Canberra, and the Westfield Marion and Westfield Arndale in Adelaide.

Westfield bought Commonwealth out of the 75,000m² Belconnen for $A230 million at a 6.75% initial yield, the 119,000m² Marion for $A323 million at 6.5% and the 40,166m² Arndale for $A57 million at 7.95%.

It then sold Arndale to Centro for $A117 million, which represented a 7.5% yield on Westfield’s 50%. Arndale had a book value for Westfield of $A45.6 million, so the sale resulted in an $A14.4 million profit.

Centro scored 2 malls, in Perth & Brisbane, when it capitulated to Westfield in the takeover of the AMP Retail Trust in July. Centro said it would hold half the new centre in its own portfolio and put the other half in its next syndicate, Centro MCS 33.

Centro also gets a writeup from Arndale: CB Richard Ellis has put a 30 November valuation on it of $A120 million ($A2978/m²) based on a 7.75% cap rate & 10%/year internal rate of return, and including $A2 million for 14,000m² of surplus land.

Westfield said its outlay would total $A527 million and its gearing would rise from 36% to 38%.

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Campaigner Bruce Sheppard swats CDL Hotels

Company was warned, and still let itself down

Small-shareholders’ campaigner Bruce Sheppard shook up the CDL Hotels Ltd annual meeting yesterday with a question which the chairman, chief financial officer and auditor were unable to answer.

The issue Mr Sheppard raised was a complicated one concerning a subvention payment of about $2.1 million made to the company’s immediate parent, CDL Hotels Holdings NZ Ltd, in return for about $15 million of tax losses.

The reason for the payment was not explained in the notes to the accounts in the annual report, and although group chairman John Wilson and chief financial officer Anthony Lee tried valiantly, they couldn’t explain several aspects to the transaction.

The disclosure in the annual report should have been fuller, so in that respect the small-shareholders’ campaign has scored a victory in winkling out an issue which will now have to be more fully justified, at least to a couple of people.

The company’s failure to explain the transaction adequately was a letdown it didn’t need. When you’re trying to convince your shareholders that you’re concerned about the disparity between asset backing of 60c and share price of 18-19c, as Mr Wilson did, the last thing you need is an attack on your credibility which you can’t fend off.

Yet this was an issue the company knew would be raised. It knew Mr Sheppard would be at the meeting, because he had three resolutions to present (all were lost on a poll). In addition, longer-time campaigner Brian Gaynor had phoned, emailed and written to the company about the subvention payment for a fortnight.

Modest performers

The three CDL group companies based in Auckland — CDL Hotels, CDL Investments and Kingsgate International Corp — have been modest performers since Hong Leong Singapore took control of them in 1992.

But over the past 12 months two of them have looked better prospects — Kingsgate has made development profits from its Birkenhead Quays and Marina project while CDL Investments’ strength has largely been hidden through its Hotels-subsidiary role — and CDL Hotels performed creditably, with good occupancy levels in 2000 and indications of better returns this year.

Against the detail of improving group performance (and it is very much a group, from the Sydney operations, through Auckland and London, back to Singapore), the Sheppard performance was one of showmanship.

A few other shareholders were encouraged to speak, but this is a desultory art in New Zealand, with little display by investors that they know much about accounts and the strategies of the companies they invest in. Shareholders tend to sit back and watch a Sheppard or a Gaynor climb in, which tells you that, in general, shareholders deserve mediocre company performances because their investments far from rigorous examination.

While Mr Sheppard’s motions were aimed at prodding directors and executives, the stick would be better aimed at the shareholding masses for not wanting to take part in educated discussion.

Previous stories: Last year’s CDL meetings
The annual result report in March
International group does well but strain shows in NZ

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National’s takeover timetable set back a week

Offer to unitholders 10 June

National Property Trust has set back by a week its indicative timetable for the takeover offer for Newmarket Property Trust.

Actual timing will depend on whether the Securities Commission grants National an exemption from issuing a prospectus.

Subject to that, National wants to deliver its notice of takeover intention to Newmarket next Monday, 27 May, send its offer to unitholders on Monday 10 June and close the offer on Friday 12 July.

National’s 6-for-10 bid prices Newmarket at 57c/unit.

Previous story: National bids for Newmarket trust again

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No defence offered in depositions hearing

Elderly alleged fraudster sent to trial

An elderly Auckland company director was committed to trial in the Auckland District Court yesterday on six charges of fraud and one of forgery involving the sale of debentures and redeemable preference shares in his company in the mid-90s.

The man went to the High Court to keep his identity suppressed last year and that order by Justice Baragwanath was kept in place when justices of the peace committed him to trial yesterday.

The Serious Fraud Office said investors put $2.8 million into the company, which SFO forensic accountant Clive Hudson and leading Auckland accountant John Hagen said had never made a cash profit, showed no substantiation for the huge amount of intellectual property claimed as an asset, and only showed a balance sheet profit at the material time in the early 90s by writing back into the books $30 million of amortisation.

The investors had not had their shares redeemed, raising their bill by another $2.6 million, and prosecutor Rhys Harrison QC said they stood only a slim chance of making any recovery.

Mr Harrison said the company claimed to have intellectual property assets of $A166 million at the time elderly investors were being lured to put money in the company, but the company had never tried to register ownership or a patent for these assets, which were all in the director’s head.

He said these assets were incapable of legal definition. “You have to be able to define them to pass ownership. You can’t define an amorphous collection of ideas and say ‘We’re selling it to the company’ or ‘It’s owned by the company.’ It’s a preposterous suggestion.”

Defence counsel Roy Ladd cross-examined a number of witnesses but offered no case at the depositions hearing this week. He said his client “in fact concedes there is a prima facie case on all counts.”

The man was remanded on bail until June 15.

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PFI buys Jack building in Mt Wellington

Ownership of adjoining sites gives development options

Property For Industry Ltd has bought the W&R Jack Ltd premises at 511 Mt Wellington Highway, Mt Wellington, next to a site PFI leases to the Building Depot, for $3.95 million at a 9% yield.

W&R Jack is a woodwork machinery wholesaler and had its 3173m² office/showroom/warehouse purpose-built in 1995 to take full advantage of the high-profile location. The entire front of the building is glazed, allowing it to be used for showroom/display purposes as well as for conventional warehousing.

PFI general manager Ross Blackmore said the acquisition opened up a range of options because the building adjoins the 4500m² of bare land available for further development on the Building Depot site.

“While both properties are producing a sound holding return, the combined sites now have a significant road frontage of 166m to the Mt Wellington Highway. This gives us the ability to consider a range of redevelopment options for these properties in the future,” Mr Blackmore said.

PFI’s investment portfolio now comprises 47 properties with a total value of more than $215 million and remains 100% occupied.

In addition, the company has 3 design/build projects worth more than $12 million under construction, with tenants committed to move in on completion.

PFI is managed by AMP Henderson Global Investors Ltd.

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“I did wrong, but,” says Van Nieuwkoop

Former Reeves Moses mortgage manager awaits verdict

Former Reeves Moses mortgage manager Peter Van Nieuwkoop told Auckland District Court judge Barry Morris this week he’d done wrong, but sought to lay the blame with the finance group’s directors at the time.

Mr Van Nieuwkoop was on trial before Judge Morris, sitting alone, for 7 days on charges alleging Securities Act regulation breaches.

The case started with 36 charges, one of which was dropped, and a number of them in the alternative. The charges relate to loans to developers of 4 projects and consequent breaches of the Securities Act (Contributory Mortgage) Regulations when Mr Van Nieuwkoop was mortgage manager of Reeves Moses Hudig Mortgage Brokers Ltd.

At the end of the trial on Tuesday, Judge Morris adjourned the hearing to Friday March 22 at 2.15pm to deliver his verdict.

Directors tried & acquitted last August

Mr Van Nieuwkoop followed 2 Reeves Moses directors into court on the same charges, but was charged from a different perspective.

He is alleged to have altered documents and made changes, such as to the interest prepayments, without authorisation. The 70 charges against the directors, Roger Moses & Gary Stevens, were based on their responsibility to know what was in the documents.

In essence, Crown prosecutor Brian Dickey had to prove Mr Van Nieuwkoop was a principal officer at the company and was party to the offences, not just someone doing his job at the call of the directors without any responsibility. If the judge establishes those points, he can then consider Mr Van Nieuwkoop’s role in Securities Act breaches.

Failure on the first 2 points in particular, but also the third, would make a civil claim lodged against Mr Van Nieuwkoop by the directors more difficult to establish.

Mr Moses & Mr Stevens faced trial last August. Judge John Hole dismissed all 70 charges against the two men, but Mr Dickey indicated then that the Crown would appeal to get certainty on certain aspects of securities law for regulatory authorities & the industry.

That appeal is scheduled for hearing in the Auckland High Court on 26 April.

Van Nieuwkoop says he knows now what he did was wrong

Towards the end of the Van Nieuwkoop trial, Mr Van Nieuwkoop acknowledged in evidence on one of the loans that, “in hindsight, I realise I was wrong and I can’t undo that, even if I wanted to.”

Judge Morris took from this that the way Mr Van Nieuwkoop dealt with contributory mortgages and loans to developers was supposed to have happened that way, though the Crown said the frequent failure to document transactions properly, and failure to inform investors as required, meant there were numerous breaches of the securities regulations.

“Yeah, I made a lot of decisions I shouldn’t have made, micro decisions,” Mr Van Nieuwkoop said. “Macro, I wasn’t given the help needed when I asked.”

Said the judge: “I’ve got the lyrics and the melody of that real clear.”

Scapegoat claim

Mr Van Nieuwkoop continued: “At the end of the day I was the scapegoat here. And I believe I made those decisions in a state of mind where I wasn’t capable of making those decisions, OK.”

On one aspect where he was dealing with a lawyer at Kensington Swan (now part of KPMG Legal), Mr Van Nieuwkoop said: “I was so over-worked, OK. I didn’t pick it up [the words “land value free of encumbrances”]. I didn’t realise those words had to be there…

“Basically I didn’t have the opportunity, didn’t have the time, didn’t have the energy. I was only looking for the valuation in terms of 2 & 15 [2 clauses which he’d highlighted as the most important to establish were correct in the documentation].”

Mr Van Nieuwkoop said he was giving evidence “to allow the court to understand I thought I was doing the right thing. I didn’t go to any training courses… Looking back on it now, I would have made Kensington Swan certify every document.”

The Reeves Moses organisation has undergone considerable change since the events under the trial spotlight occurred in the 2 years before the 1999 sale to Sovereign Ltd. Sovereign was taken over by ASB Ltd soon after, Reeves Moses was sold to Brisbane-based accountancy firm Harts, and last October sold again to Dorchester Pacific, which this week changed the name to Sterling.

Mr Moses & Mr Stevens have set up a new business, Moses Stevens & Associates Ltd. Mr Van Nieuwkoop, with other partners, set up Contributory Mortgage Nominees Ltd, Contributory Mortgage Investments Ltd and RAM Investments Ltd in late 1999.

2 of the earlier stories:

Trial over Reeves Moses contributory mortgage fiasco opens

Judge dismisses entire case against Reeves Moses directors

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