Archive | South Island

7 Sockburn light industrial properties sold

7 light industrial properties in Sockburn were sold at Bayleys’ Total Property auction in Christchurch yesterday, leaving one neighbouring property, 10 Paragon Place, unsold.

Image above: The Sockburn properties taken to auction.

The sales agents were previously with Knight Frank, which was incorporated into Bayleys this year. 3 of the properties are occupied by vehicle dealership NZ Car Canterbury Ltd.

South Island

Canterbury

Christchurch – Sockburn

3 Paragon Place:
Features: 787m² site, street frontage over 50m, 412m² warehouse, office & showroom building developed in mid-2000s; occupied by NZ Car Canterbury Ltd as its compliance facility, current lease expires in June 2019, one 4-year right of renewal
Rent: $52,000/year net + gst
Outcome: sold for $780,000 at a 6.67% yield
Agents: Campbell Taylor, Craig Edwards & Terry Connolly

4 Paragon Place:
Features: 1621m² site in 2 titles on corner of Waterloo Rd, occupied by vehicle dealer NZ Car Canterbury Ltd, 526m² of high stud showroom space & ancillary offices, amenities, workshop & mezzanine storage; lease expires June 2019, one 4-year right of renewal
Rent: $87,312/year net + gst
Outcome: sold for $1.24 million at a 7.04% yield
Agents: Campbell Taylor, Craig Edwards, Nick O’Styke & Ben Carson

6 Paragon Place:
Features: 803m² site, 521m² warehouse & office building; leased to HVAC supplier & servicer AMT Mechanical Services Ltd until March 2020, one 3-year right of renewal
Outcome: sold for $925,000 at a 6.43% yield
Rent: $59,500 /year net + gst
Agents: Campbell Taylor & Craig Edwards

7 Paragon Place:
Features: 784m² site, 413m² standalone warehouse with substantial food grade fitout installed by tenant; leased to a manufacturer & global exporter of nutritional powdered dairy products until January 2023, one 5-year right of renewal
Rent: $48,500/year net + gst
Outcome: sold for $760,000 at a 6.38% yield
Agents: Campbell Taylor, Craig Edwards, Nick O’Styke & Ben Carson

8 Paragon Place:
Features: 500m² site, 267m² single-level warehouse, showroom & office building; leased to global property services company Cushman & Wakefield until June 2020, 3-year right of renewal
Outcome: sold for $550,000 at a 6.55% yield
Rent: $36,000/year net + gst
Agents: Campbell Taylor & Craig Edwards

12 Paragon Place:
Features: 1086m² site, 637m² warehouse & office building; occupied by engineering fabricator Action Automatic Manufacturing Ltd for over 20 years, current lease until November 2019 plus one 3-year right of renewal
Outcome: sold for $970,000 at a 6.41% yield
Rent: $62,221/year net + gst
Agents: Campbell Taylor & Craig Edwards

26-32 Waterloo Rd:
Features: 2864m² unsealed, fenced landholding in 3 titles, currently used for vehicle display; current lease to NZ Car Canterbury Ltd, which also occupies surrounding properties (3 & 4 Paragon Place), expires at the end of June next year with no further rights of renewal
Rent: $50,000/year net + gst
Outcome: sold for $1.11 million at $387/m² & a 4.5% yield
Agents: Campbell Taylor & Craig Edwards

Attribution: Agency release.

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10 commercial sales around South Island

Bayleys agents in the South Island have sold 10 properties – 7 in Canterbury, the others in Blenheim & Nelson.

South Island

Marlborough

Blenheim

Riverlands, 14 Sheffield St: 
Features: 9413m² industrial site in 2 lots, 809m² warehouse, office & retail complex
Outcome: sold with vacant possession for $1.35 million + gst
Agent: Grant Baxter

Riverlands, 5 Kendrick Rd: 
Features: 7928m² of bare industrial land in Riverlands Industrial Estate, adjacent to large winemaking facilities, 3 road frontages
Outcome: sold for $1,189,200 + gst at $150/m²
Agent: Grant Baxter

Nelson

48 Bridge St:
Features: 197m² site, 2-level 330m² central city character building, shop on the ground floor, barber upstairs
Outcome: sold for $850,000 + gst at a 7% yield
Agent: Gill Ireland

Canterbury

Christchurch CBD

818 Colombo St:
Features: 1019m² rectangular vacant site, 25m street frontage, previously home to 5-storey earthquake-damaged building that was demolished, resource consented for 7-level retail, hotel/serviced apartment & residential apartment development
Outcome: sold for $1.35 million + gst at $1325/m²
Agents: Mike Adams, Nick Thompson & Justin Hayley

Darfield

2 McMillan St:
Features: 1348m² site, 535m² Horndon Mews commercial building completely redesigned, extended & rebuilt in 2015, fully occupied by 7 retail & office tenancies, 18 parking spaces
Rent: $124,000/year net + gst
Outcome: sold for $1.6 million + gst at a 7.75% yield
Agents: Ben Carson & Nick O’Styke

Ferrymead

27 Waterman Place, unit 6:
Features: 136m² 2-level corner office unit, fully repaired to 67%-69% of new building standard, short-term lease
Outcome: sold for $369,000 + gst at a 7.09% yield
Agent: George Phillips

Hornby

36-38 Waterloo Rd (pictured above):
Features: 7082m² site in 2 titles, 2070m² industrial building, seismic assessment 70% of new building standard; 3-year renewed lease to Truck Stops (NZ) Ltd
Rent: $280,000/year net + gst
Outcome: sold for $3.525 million + gst at a 7.94% yield
Agent: Nick O’Styke

Kaiapoi

13A Stone St:
Features: 477.5m² modern warehouse & office building with container height motorised roller doors; 287m² vacant, 190.5m² leased
Outcome: sold for $520,000 + gst
Agents: Stewart & Alex White

Riccarton

2 Barry Hogan Place, unit 3:
Features: 777m² office premises in Workstation Business Park; buyer intends to occupy the 370m² vacant ground floor, 407m² first floor is leased at $110,196/year
Outcome: sold for $2.1 million + gst
Agents: Stewart White & Chris Frank

Wigram

36 Dakota Crescent:
Features: 250m² industrial unit, 5 parking spaces, 12 month lease back to vendor
Outcome: sold for $550,000 at a 7.55% yield
Agents: Ben Carson & Nick O’Styke

Attribution: Agency release.

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6 commercial deals around Auckland, Porirua & Central Otago

Colliers agents have reported 5 sales in Auckland, Porirua & Central Otago, including one at an auction brought forward, plus leasing of a design-build project in Penrose.

Isthmus east

Mt Wellington

4 Rakino Way:
Features: 4500m² site, 2180m² office & warehouse occupied by Fero Ltd
Rent: $291,504/year net + gst + opex from new 6-year lease with rights of renewal
Outcome: sold for $4.45 million + gst at a 6.55% yield
Agents: Ben Herlihy & Joshua Franklin

Penrose

15-21 Bell Avenue:
Features: 2.49ha site, 6600m² industrial facility, to be developed by Southpark Corp Ltd for an Australasian automotive & water products tenant on a 12-year initial lease
Agents: Hamish West & Paul Higgins

North-east

Takapuna

Parklane Motor Inn, 2 Rewiti Avenue:
Features: 3096m² site, 2160m² motor inn, 32 rooms, 40 offstreet parking spaces,
Outcome: sold for $10.6 million + gst
Agents: Dean Humphries & Gawan Bakshi

South

East Tamaki

24 Harris Rd, unit 7C:
Features: 267m² warehouse unit
Outcome: sold for $600,000 + gst, at a 5.43% yield, at auction brought forward from 17 October after pre-auction offer accepted
Agents: Jolyon Thomson & Greg Watson

South Island

Central Otago

Alexandra

85-87 Tarbert St:
Features: 2024m² site in 2 titles, 939m² retail showroom, office & warehouse leased to PGG Wrightson Ltd
Outcome: sold for $1.35 million + gst at an 8% yield
Agents: Mark Simpson & Rory O’Donnell

South of the Bombays

Wellington

Porirua

10 Norrie St:
Features: 854m² site, 660m² warehouse & showroom
Outcome: sold for $1.1 million + gst
Agents: Vince Southee & Dean Anderson

Attribution: Agency release.

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Tauriko building leads Colliers sales


Colliers sold 2 industrial & commercial properties in Nelson and at the Tauriko business estate (pictured) outside Tauranga last week. In Auckland, the agency has sold a warehouse & an industrial property with a high office component in Rosedale.

Yields were around 5.2% & 5.9%, but below 5% at Tauriko.

North-east

Rosedale

44 Arrenway Drive:
Features: 3972m² site, 3715m² warehouse & office
Outcome: sold for $13,117,116 + gst, at a 5.88% yield
Agents: Matt Prentice & Shoneet Chand

13 William Pickering Drive:
Features: 6813m² industrial property, 1933m² floor area – 904m² of offices on ground & first floors, warehouse 984m², dock 45m², 36 parking spaces
Outcome: sold for $11.4 million + gst, at a 5.24% yield
Agents: Shoneet Chand, Matt Prentice & Josh Coburn

South of the Bombays

Bay of Plenty

Tauranga, Tauriko business estate

47 Paerangi Place:
Features: 3988m² site, dual frontage, 2296m² building constructed in 2016, 517m² canopy, 18 parking spaces
Rent: $261,738.75/year net estimated rent from 2 tenants starting 1 November, CPI + 1% annual rent reviews
Outcome: sold at auction last Friday for $5.4 million + gst, at a 4.85% yield
Agents: Simon Clark, Rob Schoeser & Doug Russell

South Island

Nelson

76-82 St Vincent St:
Features: 3826m², 15-year ground lease to service station operator NPD; construction of the self-serve station is underway, with an estimated pump date of late November
Rent: $118,125/year net + gst, 1.75%/year fixed increases
Outcome: sold at auction last Thursday for $2.03 million + gst, at a 5.8% yield
Agents: Sam Staite & Geoff Faulkner

Attribution: Agency release.

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Millbrook Resort starts work on $50 million addition

Queenstown’s Millbrook Resort has won resource consent for the $50 million development of the neighbouring 67ha Dalgleish Farm into an addition to its golfcourse, interspersed with 42 sections for high-end homes.

Image above: Millbrook’s Ben O’Malley, project manager Stuart Anderson & senior construction manager Darin Paki Paki (both of Signal Management Group) on the new development site.

It’s taken owner Millbrook Holdings (NZ) Ltd 4 years of planning, appeals, hearings & zone changes through the Queenstown Lakes District Council. The company is 90.6% owned by the Ishii family of Tokyo, who have been involved in the resort since its development began in 1987. Individual residential sites are privately owned & freehold.

The multi-award-winning 200ha resort will add 9 golf holes to Millbrook’s 27-hole course, enabling it to operate 2 full 18-hole courses. The resort’s residential limit will remain at 450 homes.

Initial site clearance is underway and work has almost been completed under a separate consent to shift the Arrow irrigation pipe to make way for the development.

Groundworks include a raft of ecological & landscape enhancements, and the first land titles should be issued in late 2020. Once the new golfcourse is constructed & “grown in”, it should be playable by 2021.

Millbrook property & development director Ben O’Malley said the net was cast “far & wide” for project tendering, and the main earthworks contract went to Grant Hood Contracting Ltd, of Ashburton.

Experienced local turf specialist company TIC Projects Ltd (Geoff & Belinda Andrew), which developed the resort’s Coronet 9 course, has been awarded the main golfcourse construction project & a golfcourse irrigation installation contract.

Millbrook is still working through detailed design on works such as roading, reticulated services & the resort’s distinctive schist stone walls.
In the initial earthworks phase, 500,000m of material will be moved within the site. A “zero cut to fill” balance means all work will be carried out with material contained within the farm area, and topsoil stripped & stored before being re-spread once earthworks are complete.

Map: The additional golfcourse will be interspersed with 42 high-end homes.

Irrigation race connection & storage lake among upgrades

Mr O’Malley said Millbrook had been working alongside the Friends of Lake Hayes & the Otago Regional Council to support their initiative to discharge off-peak water from the Arrow River irrigation race to Mill Stream, which runs through Millbrook into Lake Hayes: “They believe this will help enhance the water quality of Lake Hayes and we have the means to provide them the link between the Arrow Irrigation Co Ltd pipe & Mill Stream.”

The regional council is part-way through a plan change process that will see a minimum flow placed on the Arrow River, from which Millbrook currently sources its golf irrigation water via the irrigation company.

The minimum flow process would pose a risk to Millbrook’s golf operations, as its sand-based tees & greens, installed to meet international PGA specifications, require daily watering: ‘”To guard against this risk we’re also constructing a 30 million litre water storage lake on the farm land.”

Mr O’Malley said the new 36-hole format at Millbrook had been described as a game changer for the resort, effectively adding 100% golf capacity with 2 18-hole courses that can be operated simultaneously.

Members’ course will change daily

He said the growing number of Millbrook Country Club members would be able to play an ever-changing private members’ course on a daily basis, with another 18 holes available for tourists & locals.

It’s also good news for the long-term future of the NZ Open, currently hosted at Millbrook in conjunction with Sir Michael Hills’ The Hills golfcourse.

The Open has long planned to move to a 3-course model, similar to international Dunhill Links and AT&T events, and having 2 courses available at Millbrook would enable this goal to be achieved.

The new land also lends itself to the development of 2 discretely & geographically separated residential neighbourhoods.

The large upper plateau contains 24 sites boasting elevated panoramic views over fairways & pastoral lands to the wider basin. The lower slopes are home to a further 18 sites with north-facing outlooks over an enhanced Mill Stream & the last of the new golf holes. Mr O’Malley expected most of the sites to sell for over $1 million each.

Parts of Mill Stream will be widened to create larger waterways & enhanced wetlands. The new development will retain a rural, agrarian style, with over 20ha of working farmland retained for grazing and retention of a historic woolshed.

The original 1860s farmhouse will also stay on the land, with some sympathetic additions.

Link: Millbrook Resort

Attribution: Company releases, website.

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Mipad smart hotel opens in Queenstown

Mipad Holdings Ltd (Lewis Gdanitz & Yoshihuro Kawamura) has opened the 4-star mi-pad Queenstown, which the owners describe as “New Zealand’s first fully ‘smart’ hotel” and “a next-generation, energy-conscious hotel experience for the smart traveller and the marriage of technology, sustainability, comfort & convenience”.

The 6-storey hotel at 4 Henry St has 57 rooms with the latest in-room tech, multiple social spaces & a rooftop terrace (where the view above is from).

And the key to mi-pad Queenstown is that there is no key.

Guests booking their stay download the hotel’s personal app, ‘Mia’, and their smartphone becomes a room key, meaning physical check-ins (or check-outs) are a thing of the past.

“Mia also has a range of other tricks up her sleeve, enabling guests to set temperatures & mood lighting in their room (even remotely), request room service or alert hotel staff that they don’t want to be disturbed.

“Access to the hotel is available 24/7 thanks to the technology. Once guests are settled in, Mia transforms into a personal digital concierge, delivering the latest information on events, activities or offers and encouraging the guest to experience the best of the destination.

The $15 million John Blair-designed hotel is in the heart of Queenstown.

Years in the making

Mr Gdanitz, a Queenstown property developer, spent 3 years developing the mi-pad hotel concept – “the result of 15 years of research, travelling the world and finding the places that did accommodation really well.

“I’m delighted that we’ve been able to deliver a property that’s unlike anything else on offer in New Zealand, operating on a premise of affordable luxury delivered using the latest technology.

“I’m also very proud of the eco-conscious initiatives we have in place for every aspect of the operation.”

Mipad Holdings is a joint venture between Mr Gdanitz and hotel investment & development company TJK NZ Ltd, which owns luxury boutique hotels The George in Christchurch and Regent of Rotorua.

TJK NZ chief executive Stephen Borcoskie said the company had a proud pedigree of leadership in, and commitment to, the New Zealand hotel industry: “Our goal is to always exceed customer expectations by excelling in service delivery, and we’re thrilled to be entering the Queenstown market, which consistently leads the way in delivering world-class experiences & lifelong memories to visitors from around the globe. It makes perfect sense to open a unique property like this in Queenstown.”

Hotel manager Kylie Hogan has 20 years’ experience in international resort management, and commented on the unusual management style: “We’re offering an innovative, connected hotel experience for smart travellers who’d prefer to spend their hard-earned dollars on experiences rather than pay over the odds for accommodation.

“We appreciate that they want to keep in touch with family, friends or colleagues, whether they’re here to ski their hearts out, check out bike trails, enjoy some world-class golf or award-winning wines.

“Mia’s the key to all of that, the complete package for guests who want to have fun like a local.”

The hotel’s beds are queen-size, rooms have clever storage options, smart TVs and bathrooms featuring organic products & top-of-the-line hair-styling tools.

Guests can have as much or as little interaction with mi-pad staff and other guests as they like, including the option to share experiences, photos or messages through Mia’s private chat group. A floor-to-ceiling ‘social wall’ in the hotel’s entrance lobby also features Mia’s latest updates & guests’ shared experiences.

The hotel offers snack & breakfast options, but Mi-pad’s owners decided to keep F&B services to a minimum to encourage guests to savour the town’s eateries.

The rooftop terrace has an outdoor fireplace, plentiful seating & 270° views of Lake Wakatipu & surrounding mountains.

Link:
Mipad Hotels

Attribution: Company release.

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4 commercial sales at top of South Island

Bayleys agents at the top of the South Island have sold 3 commercial & industrial properties and a development site with 2 houses on it. An office building occupied by the Ministry of Education (pictured) sold at a 6.2% yield.

South Island

Nelson & Marlborough

Blenheim

14-22 Alfred St:
Features: 1179m² site, 433m² office building, earthquake-strengthened & refurbished. 14 parking spaces; 7-year lease to Presbyterian Support Services from April 2016 plus 2 7-year rights of renewal
Outcome: sold to an Auckland investor for $1.05 million at a 6.74% yield
Agent: Grant Baxter

Nelson

19 Haven Rd:
Features: central 1640m² site, 736m² single-storey office building constructed in 2008, 21 parking spaces; leased to the Ministry of Education until April 2020, one 3-year right of renewal
Rent: $203,266/year gross + gst
Outcome: sold for $2.95 million at a 6.2% net yield
Agents: Paul Vining & Gill Ireland

2 & 4 Natalie St:
Features: 1075m² corner site in 2 titles & zoned industrial, development potential; 2 houses totalling 300m²
Outcome: sold for $880,000 at $818/m²
Agent: Gill Ireland

Stoke

11 Echodale Place:
Features: 677m² corner site zoned industrial, 479m² building constructed in 2008 – 316m² of 4m-high warehousing & amenities, 109m² showroom & reception area, 54m² mezzanine office floor; sealed yard
Outcome: sold with vacant possession for $920,000
Agent: Gill Ireland

Attribution: Agency release.

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5.5% the firmest yield in dozen Canterbury sales

Firmest yield in the dozen most recent commercial & industrial sales by Bayleys agents in Canterbury was 5.5% on a residential conversion to retail at Darfield, 48km west of central Christchurch.

2 of the industrial sales were in Hornby, one sold on a 6.19% yield and the one pictured above, on Prairie Place, at 7.25%.

South Isand

Canterbury

Darfield

51 South Terrace:
Features: 986m² main street corner site, high profile 202m² converted residential building, occupied by 3 established tenants – a garden centre, café and a gift shop
Rent: $36,300/year net + gst
Outcome: sold for $660,000 at a 5.5% yield
Agents: Jo McIntosh & Nick O’Styke

Kaiapoi

77 Hilton St, units 8 & 9:
Features: 2 unit-titled premises in modern shopping complex, 125m² of unit 8 is leased to Elle’s Pet Centre for $30,000/year with 175m² vacant; 416m² unit 9 has 3 tenants & 51m² of vacant space, and anchor tenant Westpac has recently exercised the first of 2 3-year rights of renewal
Outcome: sold for $1.7 million at a 7.56% yield
Agents: Stewart White, Chris Frank & Alex White

Christchurch:

Addington

36 Lowe St, unit 3:
Features: 78.6m² ground-floor office unit, in 8-unit complex, 2 parking spaces; leased to Link Business Christchurch Ltd, 16 months to go on the initial term
Rent: $25,660/year net + gst
Outcome: sold for $356,000 at a 7.21% yield
Agents: Stewart White & Alex White

Hornby

6 Gerald Connolly Place:
Features: 3000m² site, 1190m² industrial building – 1079m² of warehousing with 6m stud, 2 full-height roller doors, 2 levels of office & amenities, including staff cafeteria; fully fenced & sealed yard, 20 parking spaces
Outcome: sold to an owner-occupier from Auckland for $2 million at a 6.19% yield on lease expiring this month
Agent: George Phillips

8 Prairie Place (pictured):
Features: 3610m² site zoned industrial, 460m² workshop & office building covering 13% of site, leased to contracting business
Outcome: sold for $1.31 million at a 7.25% yield
Rent: $95,000/year net + gst
Agent: Nick O’Styke

Middleton

202 Annex Rd:
Features: 1095m² industrial building, partly tenanted with holding income of $28,311/year net + gst from separated rear 360m² tenancy, vacant front portion of building comprises 460m² of warehousing, 275m² office/amenities, plus 10 parking spaces
Outcome: sold for $925,000
Agent: Nick O’Styke

Phillipstown

378-380 Cashel St:
Features: 2189m² site with dual street access, 1002m² industrial premises
Outcome: sold with vacant possession to a developer for $850,000
Agent: George Phillips

Russley

7C Sir Gil Simpson Drive:
Features: 176m² modern office unit in Canterbury Technology Park
Outcome: sold vacant to an owner-occupier for $620,000
Agent: George Phillips

Sockburn

29 Watts Rd:
Features: 3892m² of land, 2 industrial buildings totalling 2036m², leased to 2 established businesses, 28 parking spaces
Outcome: sold for $2.82 million at a 7% yield
Agent: Nick O’Styke

Waltham

4 Iversen Terrace:
Features: 1843m² site with large front yard on fringe of the cbd, 1240m² industrial building – 900m² of high stud warehousing, 290m² office area, 50m² mezzanine
Outcome: sold with vacant possession for $2.375 million
Agent: Nick O’Styke

88 Mowbray St:
Features: 9101m² site, 8090m² industrial building originally built in the 1970s as Woolworths’ distribution centre, 4872m² is leased to Fletcher Building Ltd until 2020 plus 2 8-year rights of renewal; the balance occupied by Harvey Norman Ltd until 2022 plus 3 6-year rights of renewal; 32 parking spaces
Rent: $600,174/year net + gst
Outcome: sold for $7.615 million at an 8.15% yield
Agents: Stewart White & Nick O’Styke

Woolston

19 Kennaway Rd:
Features: 2000m² site, 980m² modern purpose-built storage facility, seismic assessment 100% of new building standard; 28 separately alarmed storage units
Rent: average gross income of $92,600/year over last 4 years
Outcome: sold for $907,500
Agents: Ben Carson & Nick O’Styke

Attribution: Agency release.

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Steel & Tube gets waiver, settles Christchurch sale

Steel & Tube Holdings Ltd said today it had obtained a waiver from its banking partners for the covenant breach arising as a consequence of the signalled non-trading writedowns & impairments on its 2018 financial year earnings.

Chief financial officer Greg Smith said formal documentation on terms satisfactory to the company were in place.

He also said the company’s $21.1 million sale of 375 Blenheim Rd, Christchurch, had settled last Friday, 29 June, as expected, and the net proceeds applied to the repayment of bank borrowings.

Steel & Tube will lease the property back long-term, under terms which Mr Smith said were favourable.

Earlier stories:
24 June, 2 July 2018: Updated: Steel & Tube agrees second sale & leaseback
23 May 2018: Review puts Steel & Tube ebit loss at $38 million
22 May 2018: Steel & Tube reviews earnings guidance
4 May 2018: Steel & Tube puts second property up for sale & leaseback

Attribution: Company release.

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Updated: Steel & Tube agrees second sale & leaseback

Published 24 June 2018, updated 2 July 2018:
Update: The company’s sale below was settled on Friday, 29 June.

Steel & Tube Holdings Ltd has signed an unconditional agreement to sell its property at 375 Blenheim Rd, Christchurch, for $21.1 million on a sale & leaseback basis. It expects to complete the transaction next Friday – one day before the end of its financial year.

Late last year, Steel & Tube sold an East Tamaki property, 68 Stonedon Drive, for $32.577 million in its first sale & leaseback deal.

Chief executive Mark Malpass said on Friday: “This arrangement allows us to retain our successful operations in the newly upgraded Blenheim Rd distribution hub under favourable lease terms, while freeing up capital to pay down debt.”

He said the company’s established operations, long-term plans & recent investment into the property made it an attractive acquisition which attracted interest from multiple parties.

He expected the company would recognise a $1.3 million gain on sale this financial year, which ends next Saturday.

Steel & Tube’s earnings guidance on 23 May didn’t include any gain on sale.

The company said in that May announcement it expected to lose $38 million before interest & tax this financial year.

As a result of writedowns & impairments, it also expected its 2018 forecast earnings to result in a breach of one or more covenants in its senior debt facilities. The company said in May management was seeking a waiver from its banking partners for any covenant breach.

The company will release its annual results on 31 August.

Earlier stories:
23 May 2018: Review puts Steel & Tube ebit loss at $38 million
22 May 2018: Steel & Tube reviews earnings guidance
4 May 2018: Steel & Tube puts second property up for sale & leaseback
29 November 2017: Steel & Tube owns up to mesh label & testing guilty pleas
20 November 2017: East Tamaki property sold as Steel & Tube rings in changes

Attribution: Company release.

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