Published 29 October 2010
The unusual public auction of shares in unlisted company Radius Properties Ltd on Tuesday resulted in a sale price for the 2 parcels 17% below net asset backing at the March balance date.
The 2 parcels, each of just under 467,000 shares, were owned by resthome owners & operators Richard Parker & Rachel Harvey, but were taken to auction under a High Court order by Gateshead Investments Ltd (David Renwick, Wellington) & Paranui Properties Ltd (Erin & Wilfred Vickers, Levin).
They were taken to auction at Webb’s Auction House, better known for sales of art works, and sold under the hammer by auctioneer Mark Sumich to a party not already a Radius shareholder. Neil Campbell, of Webb’s, said there’d been “quite serious inquiries” from about 20 parties.
The parcels were sold at 54c/share, compared to 65c/share asset backing in March. That was down from 93c/share a year earlier, reduced after 2 years of losses took net assets from $25.7 million in 2008 down to $20.6 million in 2009 and then to $15.7 million this year. The company had negative working capital at the start of the year but retained the support of lender ASB Bank Ltd.
Radius Properties, an investment group which owns & operates assets in the aged-care sector, had been run by Tony Hannon (chairman) & Chris Holmes (managing director) until the annual meeting last September. Immediately after that meeting, the man who tried to resuscitate South Canterbury Finance in its final months before receivership, Sandy Maier, his wife Sherry & David Glenn took control of the Radius board, Mr Maier as chairman and Mr Glenn as managing director.
Most shares in the company are held through ASB Bank’s Investment Custodial Services Ltd.
Mr Parker & Ms Harvey ended up as shareholders through transactions involving resthomes acquired from Mr Renwick, and which they’d been trying to turn around against the odds during the difficult financial climate of the past 2 years. Mr Parker & Ms Harvey were directors of 5 resthome companies wound up this year – Autumn Lodge Home & Hospital Ltd, Autumn Lodge Investments Ltd, Brooklands Home for the Elderly Ltd, Carrington Home for the Elderly Ltd & Parakai Home for the Elderly Ltd, Brooklands Holdings Ltd (in receivership), Carrington Holdings Ltd (in receivership). Mr Parker’s Karnak Financiers Ltd was also wound up in May. Most of those companies related to resthome ownership. They’d also been directors of operating companies, sold down over the past 2 years as companies in the group faced liquidation and Mr Parker fought off bankruptcy.
Mr Renwick is a director of The Ultimate Care Group Ltd & Havencare Hospitals Ltd (removed from the register in 2005), and resigned from Guardian Healthcare Group when it was sold to UK healthcare group Bupa.
Want to comment? Go to the forum.
Attribution: Auction, company accounts & reports, story written by Bob Dey for the Bob Dey Property Report.