Published 2 July 2010
Irongate Property Ltd (ex-St Laurence Property & Finance Ltd) said yesterday it had reassessed the carrying value of its investment in the National Property Trust following the sale of most of its holdings on 13 May.
Irongate general manager Chris Minty said the reassessment, after the release of its unaudited financial statements for the March year, was done on the advice of its auditors and reflected the loss realised on the sale of its investment in the carrying value as at 31 March as part of its value-in-use calculation. On this basis, the carrying value of associates was reduced from $12.5 million to $8.4 million and the loss for the year increased from $50.5 million to $54.5 million. Mr Minty said the adjustment to the carrying value had resulted in the company breaching one of its trust deed covenants as at 31 March. However the breach was remedied following settlement of the sale. “Holding units in the National Property Trust was no longer part of Irongate’s core business and the proceeds of the sale of the units, $7.43 million, was used to retire debt. Debt reduction is one of the strategies set by Irongate’s board early in 2009 and remains a key strategy whilst the commercial property market continues to be challenging.” Mr Minty said the company’s audit had been completed and the annual report would be released by Wednesday 7 July. That’s the last day NZX Regulation has given the company to file the report or face suspension of its securities from trading. The report was due by 30 June.
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.