St Laurence Property & Finance hit by loan write downs

St Laurence Property & Finance has posted a loss of $34.8 million after tax for the six months to September 30, due to property revaluations and an increase in loan provisions.

NZDX-listed St Laurence Property & Finance is a separate entity from troubled finance company St Laurence, although St Laurence owns a stake in SLPF and also holds its management contract.

Property revaluations saw the value of SLPF’s property holdings decrease by $22.8 million in its first half results.

Loan provisions and write-offs of $9.9 million and a loss of $4.0 million on equity accounted investments also contributed to the overall loss of $34.8 million.

The net tangible asset backing has reduced from $1.39 after the April 2008 rights issue to $1.21 at September 30.

St Laurence Property & Finance chairman Kevin Podmore says 2009 will see a continuation of the current challenging environment.

“We will continue to work prudently to reduce debt levels whilst selectively pursuing opportunities that will strengthen the portfolio.”

St Laurence Property & Finance sold three properties in the six month period: Master Builders House in Wellington, 137 Gracefield Road in Petone, and 37 Omega St in Albany, for a combined total of $25 million.

Two were sold for more than their March 31 2008 book value with the third sold at a slight discount.

Proceeds from the sale of these buildings have been applied to debt reduction.

During the period, the construction of a new design-build office warehouse at 510 Mt Wellington Highway in Auckland was completed with tenant Express Data commencing its initial eight-year lease.

Also, building consents were received for 139 Quay Street, Auckland and subsequent to 30 September 2008 construction has commenced for the refurbishment of three floors and the addition of a further floor for new tenant ING.