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Snapshot on local property, week to 8 July 2001

Latest: Fletcher Building secures acute health services project, Jasmax trio win urban design competition, Force sells theatre centre to Doole, revamped WestCity opens, “tentative” OK for Sky City’s convention centre, Australasian Property trying to buy something, Ariadne selldown.

8 July 2001

Auckland Healthcare has awarded the $180 million contract to build a new acute services block at Grafton to Fletcher Building Ltd, which had been working in a preferred contractor role for the previous 18 months to complete design development.

Jasmax architects Euan MacKellar, Marko den Breems and Kendon McGrail were named joint winners of an urban design competition, Perfect Worlds, sponsored by Auckland City Council, the Institute of Architects and Fletcher Building Ltd. Commended were Tracey Ogden, a North Shore City Council urban designer, and Christophe Barkalaya, an Auckland University architecture student. The competition sought proposals for intensive residential and mixed-use buildings integrated with transport and social networks, on one of three sites — Lion Breweries in Khyber Pass, a Housing NZ complex opposite Motat and Panmure’s Clifton Court. All the winners chose the brewery site.

6 July 2001

Force Cinemas Ltd entered an unconditional agreement on Thursday to sell the St James Centre — the block of three former cinemas and retail space opposite the Force Entertainment Centre on Queen St — to developer Paul Doole for $8.5 million. A $500,000 deposit has been paid, with settlement due on 31 July. Force Cinemas is a joint venture between Force Corporation Ltd, now owned by Sky City Ltd, and Village Roadshow Cinemas. Before the takeover of Force, the company got resource consent to enable major development of the site, including a 30-storey tower round the St James, with the other old cinemas, the Regent and West End, being demolished. Force expects to get about $4 million of net proceeds.

5 July 2001

Westfield NZ Ltd officially opens its revamped Westfield Shoppingtown WestCity in Waitakere City this morning, starting early with a Maori blessing. The $80 million project took 16 months and increased the centre from 16,000m² to 28,500m². The number of specialty retailers rose from 92 to more than 130. Westfield NZ director John Widdup said the Sydney-based mall specialist, which took over the St Lukes Group, was “set to redefine this country’s retail and leisure experiences.” At WestCity it has introduced its entertainment and lifestyle precinct design, “The Street,” it has an eight-screen Village Force cinema complex with stadium seating and digital sound, and it has a bowling alley.

4 July 2001

The Casino Control Authority has “tentatively” agreed to Sky City Ltd’s proposed 2500m² conference centre across Federal St from the existing Sky City casino, with the probable condition that the casino company formally set up a responsible gambling programme. Sky City has such a scheme of its won creation, though it didn’t have to when it gained its operating licence in 1994. The new five-storey conference centre will have a 1450m² banquet room capable of seating 1000 people, and will have parking, shops and, it’s proposed, an airbridge to the existing casino building. Projected cost is $37 million for a 12-month construction timeframe. Another six months would be spent expanding the gaming area, putting 230 machines and 12 tables in the existing conference area.Sky City has extended its resource consent for the new centre between Albert and Federal Sts.

2 July 2001

Australasian Property Holdings Ltd, listed in New Zealand but with its assets at Katoomba, in the Blue Mountains west of Sydney, said it was investigating a major acquisition. Information on progress should be released by the end of July.

Ariadne Australia Ltd has an unconditional contract to sell its half share of the ANZ Centre in Brisbane to its partner, Selangor Properties Berhad, for $A38.63 million. Ariadne should get $A13 million net of debt at settlement on 20 July. Ariadne has also sold its interests in two Brisbane development sites.

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Snapshot on local property, week to 24 March 2002

24 March 2002

National Property Trust has issued a statement to unitholders on exercise of their options. Under the 18 October 1999 investment statement, unitholders were offered units with attached options. The 3.98 million options were issued for no consideration and are exercisable on 31 May. Options not exercised by then will lapse. The issue price for units issued under the option programme will be 90% of the weighted average price of units sold on 5 consecutive days between 4 April & 3 May, to be selected by the trust manager.

18 March 2002

Metlifecare Ltd increased its aftertax operating surplus from $474,000 to $7.2 million in the December year on revenue down 4.5% to $82.2 million and operating a surplus before unusuals & tax up 133.4% to $6.9 million. Unusuals cut the surplus in 2002 by $2.26 million, but added $623,000 this time. Earnings/share rose from 0.8c to 9.7c. The chairman, Peter Fitzsimmons, said the significant improvement resulted from margin growth & reduced operating costs. Debt was cut by a $21 million rights issue, which also helped accelerate planned activities. “A successful development programme saw Metlifecare continue to realise the value held within its existing land bank, with considerable investment made in upgrading & refurbishing amenities at locations throughout the country,” Mr Fitzsimmons said.

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Hotel occupancy rises 3 points in April

1 million foreign visitors, up 12%

Hotel occupancy rose 3 percentage points to 56.2% in April as international visitors spent 1 million guest nights in short-term accommodation, a 12% rise over April 2001, according to Statistics NZ’s latest figures.

Backpacker capacity continued to rise, up 5.8%, and the number of guest nights was again well above that increase, at 11.9%. International visitors spent 21% more nights in backpackers than a year earlier.

The number of British/Irish visitors rose 35% to 48,000 while the American contingent fell 12%.

Over the whole accommodation industry, including caravan parks/camping grounds, the number of guest nights rose just over 1% to 2.3 million. With Easter at the end of March, the camping ground industry suffered a 10.2% setback in guest nights, though only a marginal fall in occupancy.

Hotel capacity rose 2.6%, guest nights 6.7% and the average stay was up 0.1 point to 1.8 nights.

In the motel/apartment sector, capacity rose 2.3%, guest nights slipped 0.9%, occupancy was up 0.2 point to 55.2% and the average stay fell the 0.1 point gained by the hoteliers.

Backpacker establishment numbers rose 4% & capacity 5.8%, guest nights 11.9% & occupancy 2.7 points to 51.8%.

Excluding caravan parks/camping grounds, capacity rose 3.4%, guest nights just under 4% & occupamcy 1.8 points to 53.5%.

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Snapshot on local property, week to 24 August 2003

22 August 2003

Sale of the vacant National Bank building in central Christchurch is symptomatic of a trend for investors to buy even without cashflow, says Glen Steele of Simes Real Estate. He argued the price — $1.07 million under the hammer, well above expectations – also illustrated the benefits of the auction process in a strong market. The Simes marketing campaign attracted interest from owner-occupiers, investors & developers, and 10 of them were bidders on auction day. Simes is now leasing the building.

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Snapshot of the Week, to 10 December 2000

Snapshot of the Week is designed to improve what you get out of this website, particularly for people who find their printouts contain repetition.

The weekly snapshots will be a composite of the Local and World Business and Property Snapshots series, plus headlines on other stories compiled during the week.

The Snapshot items will also appear under their own categories.

As those monthly categories have been getting extremely long, I plan to break them down to weekly presentations as well, but will store them in monthly groups in the archives. As this is new, starting on a Friday and won’t be backdated, the first edition will run for 10 days. If it works, it’ll continue.

Calan positions for growth

Calan Healthcare Properties Trust tells its unitholders at the annual meeting the decline in financial performance in the year just gone should be followed by sound growth on the basis of construction to start in the new year, and careful positioning in Australia.Manukau consents activity update

Resource consent applications in Manukau City were down 8% in number and 36% in value in October, compared to October 1999, and for the year to October were down 18% in number and 20% in value. Given that the market was irrationally overheated in 1999 — residential consents were up 20-25% every month on a sensible level — the 2000 figures don’t make disastrous reading. Go to Locality/Manukau/Consent activity for the latest Manukau picture.Bayleys’ Total Property

Bayleys has turned over more than $14 million at its Total Property auctions in Auckland and Christchurch of commercial and industrial stock.Property Council research

The Property Council has set out a framework for a retail sales survey to be started in January. Statistics measured will include sales/m²/month and moving annual totals, and annual changes based on those figures.Snapshot on Manukau

Manukau City Council’s new incentive fund has made its first reimbursement of costs — $7095 to Pillsbury NZ Ltd, maker and marketer of fresh pasta and pasta sauces under the Frescarini brand.

Manukau City Council has launched a business investment website (External links/Local government/Manukau City: business investment) containing information on profitable opportunities and business advantages the city is promoting.Leasing strong

Colliers Jardine managing director Mark Synnott says another officer tower could be built in downtown Auckland in 4-6 years. Mr Synnott said 1999 was already dwarfed by leasings this year — 80,000m² to tenants requiring at least 1000m², compared to 70,000m² to big tenants last year — and he expected the figure to reach 100,000m² by year’s end.Regional growth forum

Auckland’s regional growth forum supported the staged development of East Tamaki, Takanini and Hingaia as proposed in the southern sector agreement, rather than holding it back as would have happened if North Shore City Council had got its way. But a proposed shift of the metropolitan urban limit at Henderson to include 80ha on the Babich vineyard block will have to go through the sector agreement process, after Waitakere City Council failed to win support for an immediate rezoning.Tasman Agriculture

Tasman Agriculture has unconditional contracts totalling $106 million for the sale of 28 farms, most settling next June, two in June 2002. The listed company, 66% owned by Brierley Investments, has sold a total 6400ha at an average $16,577/ha, 20% above the May 2000 book values. On the 6.58kg of milk solids produced in the season to May 2000, the sale prices represent an average of $16.12/kg milk solids. The latest sale, $2.7 million for 180ha at Lauriston, Mid-Canterbury, represented $16.57/kg milk solids. Tasman Ag has another three properties conditionally sold for $8 million and has several more on the market.North Shore planning

North Shore City councillors had a busy day yesterday looking at the future of their city and the Auckland region. They expressed concern at pushes for rapid development in the south and west, with the suggestion that regional growth could be distorted, couldn’t draw the line on the development map for Okura, got a progress report on the ultimate grand plan. The first of those stories is in Sector/Regional growth and the other two are under Locality/North Shore headings.Waterfront auction

Bayleys gets four sales in its Christmas waterfront auction, with negotiations continuing on some of the biggest items offered. (Details under Organisations/Agencies/Bayleys).Snapshot on World Business

American companies are delighted to be able to take over businesses worldwide, but reciprocation isn’t always well received. A South Carolina Democratic senator, Ernest Hollings, is firmly opposed to Deutsche Telekom’s involvement in the application by US mobile phone company VoiceStream Wireless Corp for wireless spectrum in an auction starting on 12 December. Deutsche Telekom, 56% owned by the German Government, has 11.5% of VoiceStream, is allowed 25% before it gets disqualified as a foreign bidder, but is said to be buying VoiceStream.

Former Rothschild executive managing director Wilbur Ross’ Asia Recovery Fund has pulled out of buying Tokyo Sowa Bank, a deal which was not helped by the arrest of four former executives in May for cooking the books to make the accounts look healthy. Mr Ross agreed in June to buy the bank, which had a Â¥102 billion ($NZ2.25 billion) capital deficit. Provisions against loan losses have been at issue since then.Snapshot on World Property

Keppel Land of Singapore has paid $S229.5 million ($NZ308.8 million) at $NZ3220/m² for three residential lots totalling 9.6ha in the prime Jingan district of Shanghai’s central Puxi. It will build about 3000 homes, aimed at Shanghai’s middle-income earners.

Singapore developer and investor Centrepoint Properties Ltd raised net profit for the September year by 29% to $S95 million on turnover up 46% to $S373 million, on full year’s earnings from the Causeway Pt shopping centre and Alexandra Techno Park block B. It did not recognise $S46.5 million of investment property revaluation gains in the result. Centrepoint’s next major project will be the 600-unit Compass Heights at Sengkang.

British cement and readymix supplier RMC has sold its Great Mills chain of 98 DIY superstores to Focus Do It All, owned by venture capital group Duke Street Capital, for £285 million ($NZ966 million). Others in the hunt were Home Depot of the US and Kingfisher. Great Mills made £25.3 million profit on £318.5 million turnover last year, a 7.9% net return.

British leisure and hotels group Bass plans to raise its profile internationally after collecting £2.3 billion ($NZ7.8 billion) from Inter-Brew of Belgium for its brewing business. Bass said it was in only 77 of the 200 resorts of the world and would increase representation of upmarket brands such as Inter-Continental. It would also seek opportunities in Europe and Asia for its Express and Holiday Inn hotels and spread its extended-stay Staybridge Suites concept through US franchising. Bass’ pretax profit for the year to September was £756 million ($NZ2.56 billion), turnover on continuing operations rose 22.8%, and operating profit on continuing operations rose 24.8%.

Aggressive Japanese clothing retailer Fast Retailing plans to open 50 stores in Britain, its first venture outside Japan. It has 465 stores back home, where it has been taking trade from Japan’s ailing traditional department stores.

A single bid of $HK2.58 billion ($NZ774 million) by Amoy Properties has won it a 20,200m² West Kowloon waterfront development site in the latest government land auction. Amoy plans to build an 18,600m² shopping mall, with eight towers of 41-42 storeys above it, containing 1700 residential units. Far East Consortium International paid $HK21 million ($NZ6.3 million) for a 2790m² residential lot in Sai Kung.

The British Government has introduced the Homes Bill to speed up house sales, reputedly the slowest in Europe for a variety of bureaucratic reasons, end gazumping, give tenants more strength through a body corporate-styled “commonhold associations,” and curb landlord powers. A proposed seller’s pack, expected to cost £500-1000 a pop, must contain information about local body searches, planning permits and a house condition report — and it is proposed to be illegal to sell a house without one.

South Korea’s second largest builder, Dong Ah Construction, went into receivership last month after failing to pay interest for six months on 470 won of loans, but its share price leapt this week on reports that it’s discovered the wreck of the Donskoi, sunk during the Russia-Japan war a century ago with gold bars on board supposedly worth 150 trillion won. Dong Ah says it has a shipwreck, but hasn’t confirmed the ship’s identity.

In Pittsburgh, the Golden Triangle Community Development Corp has proposed turning 11,600m² of space above a department store and several other buildings into a technology incubator district, complete with cyber cafés and loft apartments, and with rent around $US10-12/ft² ($US107-129/m²). In a rather familiar tale, they were trying to save the buildings from the mayor’s now-defunct renovation plans. Both the department store and mayor were named Murphy.

SL Green Realty Corp has signed to sell the 633 Third Ave Condominium for $US13.25 million, three years after buying it in a four-building deal for $US9.8 million. The buyer, Joseph Nakash of Third Avenue Realty and Jordache Enterprises, gets 3770m² of ground-floor and concourse retail outlets at the base of a 41-storey Midtown Manhattan commercial condominium building. For condominium, read boutique/specialty/suite.

US reits (real estate investment trusts) are in their fourth-quarter dividend-declaring season, a period which seems to focus on the number of cents the biddies will get for Christmas. The focus is definitely not on percentages, and whether a share price is higher or lower seems irrelevant. They are, in effect, treated like bonds, with a proviso at the bottom of every statement saying their projections might not be fulfilled. The latest result comes from AMB Property Corp, an industrial reit which targets high throughput distribution (HTD) properties. Last month it added 83,000m² in 20 on-tarmac air cargo sheds at eight airports Federal Express occupies nearly 30% of its new space.

Cousins Properties and Prudential Insurance (holding 11.5% of a joint venture) have bought the 35,200m², 28-storey One Georgia Centre on West Peachtree St in Midtown Atlanta for $US35 million. It has a 1:30m² parking ratio, 1171 parking spaces on four basement floors and seven in a separate structure, and an adjacent site zoned for a similar-sized tower. Cousins’ property interests range across office, retail, medical and development.

Private Californian apartment investor Pacific Property Co has bought one 406-unit Santa Ana complex from the Pacific Gulf Properties reit for $US35.55 million and two from a San Francisco developer for $US24.35 million, taking its portfolio to 3600 units at a $US325 million cost. The value assessment is on occupancy (95% for one, 99% for the other two) and average monthly rent: $US888 for the Santa Ana one, $US1111 and $US1138 for the other two.

Henderson Land Development chairman Lee Shau-kee told the company’s annual meeting Hong Kong’s mass-residential market would stay flat next year, but the company will not slash prices on 2000 unsold units because to do so would jeopardise profits. Other big Hong Kong property companies, such as Sun Hung Kai, New World Development and Cheung Kong Holdings, are more optimistic about price rises.

Hong Kong’s residential development market will be tested this week with the auction of two properties in West Kowloon and Sai Wan Ho on Thursday and the tender on Friday of a Sai Kung property, expected to earn the Government $NZ1-1.6 billion. Developers have been cutting prices for months to achieve sales.

Industry Superannuation Property Trust’s Riverside Corporate Park at North Ryde has been tipped in the Australian Financial Review as the site for Canadian internet and telecommunication company Nortel Network’s new Sydney headquarters — at least 25,000m² at rent exceeding $A300/m². Nortel would consolidate two existing Sydney properties there, but is also taking 8500m² in airport suburb Botany for Phototonics Technologies, its optical network components company. The other main competitor for the headquarters site was the redeveloping Pyrmont Peninsula.

Eight people died in the collapse of a popular shopping mall in Guangdong Province, China. The temporary single-storey building, erected over a drainage ditch, crumbled when two unauthorised extra floors were built on top by the tenant.

Westpac Bank in Australia has handed over management of the Westpac Property Trust after the unitholders agreed to turn it into a self-contained property investment and management group. Shares in the manager have been stapled the existing units and the combined entity will be known as the Investa Trust Group. It will still earn most of its money from Westpac-related business, but has already launched one new fund, the $A43 million Collins Property Trust syndicate.Rodney Consent activity

Universal Homes Ltd has won approval for its 294-house subdivision on 28ha at Silverdale North.

Rodney District Council’s principal planning commissioner, Ken Graham, is satisfied with changes made to a proposed seven-level commercial and apartment building on Florence Ave, Orewa, which was originally turned down in August.

Graeme Hinton’s project is planned for industrial-zoned land overlooking single-storey residential properties, one of whose residents, Mrs Anne Janssen, remains opposed to the project. Mr Graham granted consent to the revised project yesterday, leaving Mrs Janssen and the National Trading Co, parent of the New World supermarket chain which wanted more parking provided, to pursue an appeal to the Environment Court.

Rodney planning commissioners, independent operators of the district’s regulatory system since the councillors resigned/were suspended eight months ago, have occasionally questioned the proposed provision of parking for which council officers have recommended that resource consent applicants should pay financial contributions towards.

Those questions took positive effect yesterday, when commissioner Ken Graham agreed to waive the fee for an 11-car shortfall in a new development at the Manly shops at 54-56 Rawhiti Rd, on the Whangaparaoa Peninsula.

Consent was granted in April, but developer Peter Rigg (Pamber Auckland Ltd) argued future financial contributions should only be payable if the council had a firm proposal to provide additional parking in a location which would serve the development. He also argued he have input into a future parking survey and who will carry it out. A contribution may become payable once the council has a firm parking scheme to develop.

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Park Regency closes doors

Dispute between unit-title owners and managers

The Auckland Park Regency Hotel on Greys Ave closed its doors on Friday because of a long-running dispute between owners of the unit-titled rooms and the management. Guests at the 170-room hotel are being re-allocated to other Auckland hotels.

The Park Regency opened only in May last year, with an ambitious guarantee to investors of a 9% net return for 10 years, annual inflation adjustments after two years and surplus profit share.

John Davies, director of management company Tourism Enterprises, had nothing to say tonight about the closure and the other management company director, Peter Thorpe, would only say that “we’re waiting to see what the owners want to do. Everything at the moment is just temporary. It’s probably in the hands of the court. Give us a call in a couple of weeks’ time, when it’s all finalised. It’s a standoff situation.”

The $39 million hotel was opened by the Governor-general, Sir Michael Hardie Boys, last May, with seven of the 17 penthouses and one one-bedroom unit — worth about $2.4 million — unsold. Project finance included a two-year, $7 million mezzanine bond issue at 15%, which was repaid on schedule.

The high-quality four-star hotel, one of two overlooking Myers Park (the other, the Quest Auckland, is on Queen St), was marketed by Mainstay International. It opened with rack and corporate rates of $240 and $195 a night respectively for deluxe studios, up to $685 (corporate $550) for a two-bedroom penthouse, and $40 extra for a room with a spa, all plus gst.

But for first three months it joined the battle for customers by offering those deluxe rooms for $120 ($99 at the weekend) and one-bedroom penthouses for $230 ($180 at weekends, rack rate $420), all plus gst.

This weekend one staff member held fort and a staff meeting is to be held tomorrow.

The managers were highly experienced. Mr Davies has been in the hotel and motel industries for more than 20 years, including a term as executive director of the Motel Association of New Zealand. He also developed several motels and, in 1989, became New Zealand chief executive officer for the international Best Western Group.

Mr Thorpe, an engineer, was also a director of Best Western NZ.

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Snapshot of the Week, to 21 July 2002

Snapshot of the Week lists the headlines from all stories published on The Bob Dey Property Report as they appear during the week. The Snapshot is broken into categories for easier tracking, with links to the story page for each item.

There are some quirks to the system: A brief item on a listed company may appear in Snapshot on Local Business rather than under that company’s name in the Organisation/Listeds section, for instance.

In all categories, the latest news appears at the top of the list.

This week:

Auckland City consent activity:
Independent commissioner to hear Sky City overbridge application

Kells to build apartments at Mid City

Extra 24 units in skinny Wyndham St project

Rakino’s gets airspace lease for its balcony

20-table pool club for Khyber Pass

Stephen Smart to extend Ryecroft Lodge in Parnell

Milly’s to open Strand kitchen shop

Newmarket Wines & Spirits to open on Strand

Mt Albert’s Momo Tea Café to become tavern

Remediation & apartments for dental nurses’ school site approved

Marcam gets non-notified hearing for 92 units beside 3 Kings quarry

Council sticks with demand in Beaumont Quarter reserves tradeoff

External links:

Trendsideas.com

Knowx

PricewaterhouseCoopers

Clever Companies website

Sail Connections

Lockwood Homes

Listeds: PFI raises profit 5% to $7.2 million

Newmarket directors recommend National offer

Local business:
Grant Samuel finds forest buy fair

CPI rises 2.8% over year

Fletcher confirms funding to buy forests

Energy efficiency awards close 26 July

Local property:
Rejection of asset sales protest no surprise

Council agrees to Glendhu Rd link

North Shore:
Jonmer gets new consents for Anzac St project

All 6 Clifton Pt apartments sold in $2.4-3 million range

propbd Diary – Listeds:
National bid for Newmarket closes 9 August/National meeting on Newmarket takeover

Rodney:
3 more ticks as Rodney council approves sewerage scheme

$8-10.5 million for Whangaparaoa town centre revamp

Shortland St: Manson buys Shortland St carpark

Statistics: Institute figures show strong house sales lift

Backpacker use rises 20% in May

U: FRP Orchards closes

Elkhishin’s Takiron Property Developments
wound up

Lynn Turner’s Wincott faces liquidation

Henderson Installations faces liquidation after receivers appointed

J&P Painting & Decorating faces liquidation

Redeal wants to wind up A1 Electrical

Nathan’s DFL faces liquidation

Flowmotion Pipeline Solutions faces liquidation after receivers appointed

Liquidation call for Ibiza & Isobar, in receivership

Display Cabinets in voluntary liquidation

Henderson Installations faces liquidation

AM Homes faces liquidation

ACC pursues Zenith Scaffolding

Receiver at Precision Hearing after CFD wound up

Liquidators at Concept Fabrication

Liquidator at Peninsula Property Developments

Executive Office Suites in voluntary liquidation

Iguacu in liquidation

2 Fernandez companies in receivership

IRD chases Roberts Roofing

IRD chases Counties Contractors

Travelex company closed

Lonestar Builders in voluntary liquidation

IRD chases Care Scaffolding

Clode company Terraces On Main faces liquidation

IRD seeks liquidation for Debt Repay

Jomandi Aluminium struck off, now faces liquidation

IRD chases SE Adal

Director forms new building company as IRD chases B&H Construction

IRD pursues company which controls trust

SalusHealth tender closes 26 July

IRD chases Botany Developments

Nonferral faces liquidation

Axis Construction faces liquidation

Blackmore Insurance Broker closes

Receivers at Flowmotion Pipeline Solutions

Receiver at Steel Solutions

Flooring company joins pursuit of Mark Lyon

Couldrey wound up after remedial work dispute

Harts chases Ethnik Krasniqi for $700,000

University precinct: Local syndicate buys Fisher building

World business: HK magnate picks up after American selldown

Symantec buys 3 new computer security businesses

Survey confirms auditing doubts

World property:
Starwood closes sixth global fund

Just 5 Unilever HPC distribution centres for whole of US

Host Marriott earnings slashed

Lend Lease UK retail partnership gains investors

Forest City makes Russell 1000 index Your Text Goes Here

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Fletcher Building strides into profit

Earnings well above cost of capital

Fletcher Building Ltd continued to stride out of the bad days of the Fletcher Challenge conglomerate’s demise, increasing earnings before interest & tax (ebit) by 118% to $205 million in the June 2002 year.

Net earnings before unusuals were $88 million, compared to $18 million the previous year. Net earnings after tax & minority interests were $93 million. Taking into account the restatement of capital notes interest last year, the 2001 net earnings on a comparative basis came to a $288 million loss.

Ebit gains were strong in all segments of the company — building products up 47% to $85 million, concrete up 94% to $60 million, construction up 500% to $30 million, distribution up 89% to $34 million.

Chief executive & managing director Ralph Waters said the 2002 results were based on better margins through price movements, operational efficiency gains & lower overheads. In the second half, demand for the company’s products increased strongly.

Mr Waters said the result represented a 16.9% return on average equity & 23.1% on average funds employed, and were well above the cost of capital.

He said Fletcher Building expected demand to remain strong through the first half before easing in the second half.

The final dividend of 8c, with full dividend withholding payment tax credits, takes the year’s dividends to 14c, compared to 12c the previous year.

Out of Bolivia

Fletcher Building Ltd is escaping the Bolivian concrete businesses it entered after the group (during the dying Fletcher Challenge conglomerate days) replaced a few foreign investments such as US & Australian construction with a bizarre spread of small & profit-unlikely enterprises, such as South American aggregate operations. Fletcher Building has agreed to sell to Bolivian cement producer Soboce SA for $US10 million, similar to the 30 June balance date carrying value, with settlement by November.

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Snapshot of the Week, to 18 March 2001

Snapshot of the Week lists the headlines from all stories published on The Bob Dey Property Report as they appear during the week. The Snapshot is broken into categories for easier tracking, with links to the story page for each item.

There are some quirks to the system: A brief item on a listed company may appear in Snapshot on Local Business rather than under that company’s name in the Organisation/Listeds section, for instance.

In all categories, the latest news appears at the top of the list.

This week:

Auckland City consent activity: Commissioners appointed for Avondale innovative housing hearing

Consent for rail corridor factory extension

Penrose cul-de-sac stopping approved

Non-notified hearing for plan to create undersized sections

Britomart: New scheme for Britomart interchange voted through, but with $249m cap

Listeds: International M&C hotel group does well but strain shows in NZ

CDL Hotels improves its main business

Margin harder to achieve for CDL Investments

Kingsgate does well out of development but loses on hotel writedown

Mainzeal profit $2.9 million as Richina Pacific returns to black

Deka to close

National to absorb Southway
Local property

CDL Hotels profit slumps 76%
Local property

The Warehouse profit up 7.7% to $52m

Local business
:
Takeovers panel seeks comment on exemptions

Air NZ traffic up

Court approves Fletcher separation

Warning on overseas share deals

Local property: Young moves to Jasmax Wellington

Fletcher and Axa end Victorian cogeneration dispute

Sky expects Force stand to start in next week

Kiwi Income pays dividend early

Savoy to release result late

Bayleys issues Total Property portfolio

Shortland wins costs argument from Kiwi’s aborted takeover bid

Income up but capital value down in Property Council index

West Plaza on market

Rodney consent activity: Extension for district plan extensions, appeals, delegated decisions

Statistics: Short-term stays rise 9%

World business: Coles Myer profit slashed

HIH Insurance in liquidation

UK Pru bids for American General

Buffett loses on insurance but makes out of investing premiums
Berkshire Hathaway chairman’s report

Buffett on growth and valuation
Berkshire Hathaway chairman’s report

Cisco sneezes over the world

World property: Sun Hung Kai holds profit though sales slashed

Cheung Kong Infrastructure profit down 3%

Westfield expands in California

Industrial owner Monmouth spreads out

Writedowns give mall owner JDN Q4 loss

Transfield dispute over

Canadian bank signs $US800m lease on Manhattan tower

Great Eagle profit slightly off

Big lift for Forest City Enterprises

Raffles City selldown

Ssanyong profit up 125%

Li Ka-shing secures third Australian project

Shell & core basis for new HK tower

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Snapshot of the Week, to 8 December 2002

Snapshot of the Week lists the headlines from all stories published on The Bob Dey Property Report as they appear during the week. The Snapshot is broken into categories for easier tracking, with links to the story page for each item.

There are some quirks to the system: A brief item on a listed company may appear in Snapshot on Local Business rather than under that company’s name in the Organisation/Listeds section, for instance.

In all categories, the latest news appears at the top of the list.

This week:

Auckland City consent activity: Change of commissioners for Krukziener project

Spaghetti junction upgrade endorsed

New panel to speed up hearings & appeals process

External links: Forest City Enterprises Inc

Sunrise Senior Living Inc

Marriott International

Listeds: Paramount trust chairman has to take up subscription slack

Auckland City sells half its airport stake

Mea culpa at Calan

80% of Paramount float allocated; Paramount opens at $1 issue price

Local business: ARC opts for capital value as rates basis

Pukekohe water allocation to double

Local property: Kopu bridge to be replaced

Manukau consent activity Split decision on pool safety regulations

propbd Diary – Listeds: Newmarket Property Trust annual meeting

Rodney consent activity: Universal gets Whangaparaoa subdivision approved

Warkworth subdivision rejected

Precedent concern prevents Dairy Flat subdivision

Baker’s Horseworld gets Takatu consent

U: Nathan shuts door on 6 companies

Ex-Genesis Phoenix Residential Solutions faces liquidation

Phoenix Property Solutions in court same day

Johnson Developments faces liquidation

IRD seeks liquidation for Venture Homes

IRD seeks liquidation for Ototoa Farms

Northcross company in Dental Care group faces liquidation

Creative Environments faces liquidation

Subritzky closes Mataka company

Clavell Capital team’s ex-NZ Fund in liquidation

Waterproofers Thompson & Winkler close door

Dallas Construction faces liquidation

Lawyer seeks liquidation for Mawhinney group

Raymond out of bankruptcy

Todd & Dymocks in settlement talks

Brill’s Shag Lake Farm wound up

Bongard wound up

IRD gets John Russell’s Roma wound up

Adjournment for Drewet

Moyes & Groves settles

KRS Builders gets adjournment

Trendy Homes hangs in

Edserv gets fixture

Origination wound up

Frognal wound up

Hartners’ Kepa Developments wound up

Grimbuild wound up

Cull’s 2 Waterview Downs companies wound up

Koning liquidates Kew Investments

Engineering Innovations in liquidation

Kenneth Williams & Co wound up

Hunter quits Mainzeal for McConnell

Herberts wind up Pembroke Holdings

Clode company Avenue Builders faces liquidation

Dakin replaces Cundy at Colonial

World property: 3600ha community master plan unveiled

Buying double to save

Officeworks buys Viking

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