Archive | Mercer Group

Propbd on Q W23Dec15 – Vodafone to move, Mercer sells division to manager, Daldy St unconditional, St Lukes sale, Novotel opens

Vodafone leaving Fanshawe St
Mercer Interiors manager buys division
Goodman joint venture unconditional on Daldy St building
Argosy sells St Lukes property
Novotel opens in New Plymouth

9.45am:
Vodafone leaving Fanshawe St

Vodafone NZ Ltd has told its landlord, a 51:49 joint venture between the Goodman Property Trust and the Singaporean sovereign wealth fund GIC, it won’t be renewing its lease on the Vodafone Building on Fanshawe St when it expires in April 2017.

Trust manager Goodman (NZ) Ltd’s chief executive, John Dakin, said today the 13,932m² building opposite Victoria Park would be one of very few opportunities available for large corporate occupiers seeking prominent business premises in 2017.

Mercer Interiors manager buys division

Mercer Group Ltd has entered into an unconditional agreement to sell its interiors division to an entity majority-owned by the division’s general manager, Ivan Ramsey.

Mr Ramsey’s $2.15 million purchase (subject to customary adjustments) includes fixed assets and the lease of the Christchurch manufacturing site, and relevant employees will stay with the interiors business.

$1.25 million is payable on the completion date, the balance in 2 equal instalments on the first & second anniversaries of the completion date, 2 February 2016.

Mercer chief executive Richard Rookes said the sale was a further step in the restructuring of the group, following sale of the medical division in October: “Mercer can now focus on its core business & its new vision, which is to design & supply innovative food-processing & packaging systems to the world. With the relocation of the head office to our premises in Christchurch in the first quarter of 2016, the restructuring will be largely complete and we can focus on growing our core business.”

Mr Ramsey said: “We look forward to growing the interiors business with exciting new products from Wilsonart and our NZ-manufactured sink range during 2016 & beyond.”

In a second transaction, Mercer has acquired 25% of Titan Slicer Ltd for a nominal $1 and now owns 100%. The Titan operations will move from Nelson to Mercer’s headquarters in Christchurch in the first quarter of 2016.

Goodman joint venture unconditional on Daldy St building

Goodman (NZ) Ltd confirmed yesterday that the joint-venture purchase of the office building being developed in the Viaduct Quarter for Datacom was unconditional.

Fletcher Building Ltd will hand over the 16,735m² building – on the corner of Gaunt & Daldy Sts in the Wynyard Quarter’s VXV Precinct – when it completes construction in March 2017. The $86.2 million acquisition is being made by Wynyard Precinct Holdings Ltd, the joint venture between the Goodman Property Trust & Singapore sovereign wealth fund GIC.

Earlier story:
27 March 2015: Fletcher & Goodman sign up for new Wynyard Quarter building

Argosy sells St Lukes property

Argosy Property Ltd said yesterday it had entered into an unconditional agreement to sell the industrial property at Wagener Place, St Lukes, for $10.5 million, and the Storage King business that occupies the property for $500,000.

Chief executive Peter Mence said settlement was due in March. Argosy had classified the property as non-core. The company has sold $36.1 million of properties this financial year.

Novotel opens in New Plymouth

Accor Hotels & Resorts has opened the $22 million 85-room 4½star Novotel New Plymouth Hobson. The hotel, on the corner of Hobson & Leach Sts, has executive rooms, studios, one-bedroom apartments and a penthouse suite, 3 food & beverage outlets, 2 meeting rooms, a swimming pool, gymnasium & day spa.

Owner Philip Brown developed the hotel, and Foster Construction Ltd of Hamilton and CL Construction Ltd of New Plymouth built it.

Attribution: Company releases.

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Mercer shifts loan balance from South Canterbury to director’s company

Published 6 July 2010

The remaining $1.04 million balance of a loan owed by small listed company Mercer Group Ltd has been shifted from one related party to another.

 

Mercer said on Friday that South Canterbury Finance Ltd had assigned the balance to Gresham Finance Ltd. South Canterbury’s shareholders, Allan & Jean Hubbard, own 45% of Mercer while Gresham owner Humphry Rolleston is a director & 18.6% shareholder of Mercer and former director of South Canterbury.

 

Mercer, which changed its name from Broadway Industries Ltd at its annual meeting last November, is a manufacturer of stainless steel products.

 

Chairman Ian Farrant said in May the company’s bank, Westpac NZ Ltd, had told it that it was in breach of its interest cover covenant, which required earnings to be no less than 2.25 times the funding costs for the 6-month period to 31 December 2009. The actual achieved ratio was 1.9 times. Mercer subsequently drew down $1.5 million from Gresham, which shareholders had authorised at the annual meeting, using the funds to reduce bank debt. It also put principal payments to non-bank lenders on hold in May, although it continued to make interest payments.

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Attribution: Company releases, Companies Register, annual report, story written by Bob Dey for the Bob Dey Property Report.

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Broadway to buy Duratech

Published 13 February 2008

Broadway Industries Ltd agreed today to buy Duratech Wholesale for $3.35 million, subject to Commerce Commission approval & bank finance. Settlement is expected on 1 April. Broadway chief executive Howard Milliner said Duratech Wholesale, a privately owned Hamilton-based business, was an importer & distributor of kitchen sinks, laminate & solid-surface material. Major brands include Reginox, Borelli, Advante, Askilan, Koris & Bisonne. Duratech sales for the March 2008 financial year are expected to be $6.8 million.Mr Milliner said Broadway would merge the Duratech business with the Mercer Stainless business unit, Mercer Products, which manufactures & supplies kitchen, bathroom & laundry products in New Zealand & Australia. He said Commerce Commission approval was required because of the increased market share that results from the acquisition.

 

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Attribution: Company statement, story written by Bob Dey for this website.

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