Archive | Chow Group

Chows revert from hotel to office upgrade for old Colonial Motors building

NZX-listed property company Chow Group Ltd’s management company, CGML Ltd, said yesterday it had axed plans for a 230-room hotel conversion of its century-old 89 Courtenay Place tower in Wellington and, instead, would upgrade it for office use.

Director Michael Chow said the 9-storey 8720m² building would be upgraded to 88% of new building standard, making it one of the highest seismically rated office buildings in the Te Aro district of Wellington.

Mr Chow said the refurbishment would be a multi-million dollar exercise, but didn’t give a precise figure.

The former Colonial Motor Co Ltd building was erected in 1922, with changes to its Courtenay Place façade since then.

Mr Chow said refurbishment would start this month, and phased completion would start happening within 3 months.

The building has 950m² floorplates, some with character ceilings, and it’s best known for its expanse of windows. It has 70 secure onsite parking spaces, accessible from York St.

Last year, the Chow brothers had planned to convert the commercial space into a 4-star 230-room deluxe hotel, but changed their minds after the November 2016 earthquakes, where retaining the commercial property was better aligned to the Chow Group’s business goals.

“An important consideration for businesses is the safety of buildings in the event of seismic activity. The structural integrity of 89 Courtenay Place was not affected by the November 2016 7.8 earthquake, meaning our existing tenants were undisturbed while much of the city came to an abrupt halt.

“As part of our refurbishment plans, we are taking steps to increase our new building standard rating from 71% to 88% and we anticipate high demand for these spaces, which have been offered for immediate lease.” he said.

Naming rights will also be available.

Link:
History, Wellington City Council heritage site

Attribution: Company release.

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Chows’ Inno Capital buys fire protection company from receivers

Inno Capital Management Ltd, owned by John & Michael Chow & Clint Webber, has made its second acquisition of a company in the hands of receivers.

They’ve dropped the business of AFS Total Fire Protection Ltd into a new company, Stonewood Fire Services Ltd, sitting alongside the Stonewood Homes NZ franchise business bought from receivers in March.

Inno reached an agreement with receivers Damien Grant & Steven Khov of Waterstone Insolvency to acquire AFS’s assets for an undisclosed sum after Inland Revenue said it would seek to liquidate the company. Inno had bought AFS’s bank debt earlier in the year and appointed the receivers to protect its loan.

Both receivers & liquidators were appointed to AFS on Friday, but the Chow brothers said they wanted to turn the business around, as it’s doing with Stonewood Homes.

AFS manages fire sprinkler & alarm systems for clients including AMP, Auckland Transport & DHL, and employs over 50 staff. John Chow said no job would be guaranteed until Inno had fully reviewed the company’s books & processes.

Mr Webber said it had been important to act quickly: “If we’d let the company go into liquidation a lot of businesses would have been left with an uncertain fire protection & monitoring service over the summer period. Given the nature of this industry sector, there was a strong imperative to act in a corporately responsible way and I can assure all AFS clients right now that the business will continue without interruption.”

Inno is a non-bank lender but also seeks investment opportunities. It’s separate from the property-owning Chow Group Ltd, which the Chow brothers& Mr Webber listed on the NZAX through the reverse takeover of RIS Group Ltd, completed in February.

Attribution: Company release.

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Chow Group records $8 million profit as listed company

Property owner Chow Group Ltd has produced an $8 million profit in its first annual result as a company listed on the NZAX since its backdoor listing through the reverse takeover of RIS Group Ltd, completed in February.

The profit figure flows through from the $8.35 million increase in fair value of its investment property portfolio (from zero). Last year, as RIS, the company recorded a $48,251 loss.

Wellington brothel & property owners John & Michael Chow signed a conditional agreement last November to reverse list the owner of a refurbished Otahuhu boarding house, 16 Park Avenue Ltd.

The company’s 31 March balance sheet, in the process of being audited, shows $18.66 million of assets, including $15.5 million of investment property. The company recorded pretax profit of $8.2 million for the 9 months to March (changing its balance date), total comprehensive income of $8 million, basic & diluted profit/share of 6.03c (a 0.16c/share loss in 2015), net tangible assets of $1.03 (a deficit of 2c in 2015).

It’s written off the $403,000 loss on acquisition & $495,200 takeover costs.

Company chair John Chow said the company was proud of its achievements so far and was working hard to find ways to further increase shareholder value: “Our annual report has been produced in record time and will be released this week. Our annual meeting will be held in August. We are working on further opportunities and we will announce these as soon as we are able.”

Earlier stories:
11 November 2015: Chows use RIS Group to backdoor list property portfolio
28 April 2014: Chow brothers put brothel site on market

Attribution: Company release.

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