Property vehicle Irongate has escaped suspension after filing its annual report late but just in time.The company's report for the year to 31 March 2010 was due on June 30, and an announcement from NZX Regulation said it would be suspended today if the re
Property vehicle Irongate has escaped suspension after filing its annual report late but just in time.
The company’s report for the year to 31 March 2010 was due on June 30, and an announcement from NZX Regulation said it would be suspended today if the report hadn’t been received.
But seven days late, Irongate filed its annual report yesterday.
The report details a $54.5 million loss.
Irongate sold more than $120 million of property in the year to March, with proceeds going towards reducing its gearing down to 34.5% or $81.6 million.
This was an improvement on the previous year’s $87.2 million loss.
The reason given for the $54.5 loss this year was a lack of demand from property investors and weakening in property values.
“This result was disappointing and was adversely impacted by a $24.8 million decrease in the value of the Company’s property portfolio, which was largely attributable to unrealised revaluation losses in respect to our development properties,” Irongate general manager Chris Minty said.
“In addition, the achievement of our debt reduction objective through the successful divestment of a substantial number of properties necessitated our realising some losses on sale."
One of the most significant areas of its portfolio to take a hit from the downturn was the Riverpoint luxury apartments at Brisbane’s West End.
“The global financial crisis has also had an adverse impact on our loan portfolio. In particular a fall in demand for high quality residential apartments in Brisbane (in the $1.25 million to $2.25 million price range) has necessitated our making a $12.7 million loan provision against our Riverpoint investment,” Mr Minty said.
Its total assets at March 31were $236.3 million.
On July 2, it announced it was received $45 million funding from Bluestone Group that would allow it to repay its Series 1 and 2 bonds due for maturation next week in full.
