NEW HOTEL GROUP

Press, Volume CIV, Issue 30794, 5 July 1965, Page 17

NEW HOTEL GROUP

(N.Z. Press Association) AUCKLAND, July 4. Auckland Intercontinental Properties. Ltd., which is to build a £3.3m tourist hotel here, expects to earn at the rate of 5 per cent on capital of £420,000 once initial losses have been recouped and the company is paying tax at normal rates. This forecast is based on a 63 per cent occupancy rate. This is disclosed in the payability study prepared by Mr D. S. Cox, an Auckland public accountant, in the prospectus for the £253,000 par issue of 20s ordinary shares. The issue will open at noon on July 12 and close not later than noon on July 26.

It has been underwritten by Daysh, Renouf and Company, Wellington sharebrokers. Associate brokers are Jordan, Sandman, Smythe and Company, Auckland. Shares will be payable in full on application, which must be for a minimum of 100 shares, thereafter in multiples of 50. Directors say in the prospectus that a reasonable dividend policy will be adopted after the company is soundly established.

The payability study estimates that the company will make a loss of £130,065 in its first year of operation, a loss of £105,840 in its second, earn a profit of £9250 in its third, and a profit of £54,950 in its fourth.