Trust set up to refinance Dorchester Pacific in 2010 sells final hotel
Emerald Hotel goes unconditional.
Emerald Gisborne Property Trust, the hotel investor set up as part of the recapitalisation of the financier and insurer now known as Turners, says a deal to sell the Emerald Hotel in Gisborne has gone unconditional.
The trust was formerly known as the Dorchester Property Trust and at the time of its establishment in 2010, owned four hotels estimated to be worth $33 million.
The deal to sell the Emerald Hotel means that all of the hotels have now been sold. The only remaining assets in the trust include a penthouse and an apartment in the Emerald complex which are being marketed separately.
Units in the trust are listed on the Unlisted platform and were created when 7200 Dorchester Pacific debenture holders, owed $84 million, swapped their debt for the units along with shares in the finance company, three-year interest-bearing notes, and options to buy more stock as part of a deal to keep the company going.
The sale of the Emerald Hotel is due to be settled on June 14. Total proceeds are expected to be just under $6 million before selling costs or 40c a unit.
Before going into a trading halt, the units were trading at 38c. The remaining penthouse and apartment are expected to raise $700,000 before selling costs, and this hasn't been included in the 40c a unit figure.
Management says it expects an initial distribution to unitholders will be made by the end of June.
(BusinessDesk)
Edwin Mitson
Thu, 12 May 2016
Thu, 12 May 2016
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Trust set up to refinance Dorchester Pacific in 2010 sells final hotel
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