Prop. Secs, hampered by title system

Press, Volume CXI, Issue 32587, 22 April 1971, Page 16

Prop. Secs, hampered by title system

(New Zealand Press Association) WELLINGTON, April 21. The lack of a workable “strata title” system is in our opinion the root cause of the inability of developers to proceed with the larger owneroccupier flat developments, says the chairman of Property Securities, Ltd, (Mr F. H. Renouf).

As already announced, the Interim dividend was increased from 3 per cent to 4J per cent, and the chairman says that it is expected that a final dividend of 4} per cent will be recommended. This will raise the dividend rate from 8 to 9 per cent, the fourth year in succession that the payout has been increased. In his half-yearly report to

1 shareholders Mr Renouf says ' that the difficulty in arrangi ing mortgage finance for this type of development was the main factor in the reduction of underwriting opportunities in the current economic climate. “We welcome the Government’s announcement of legislation this year as, in Wellington in particular, the large-scale redevelopment of decadent areas into high-rise apartment blocks is virtually at a standstill at a time when the need for such accommodation is rising,” he says. The proceeds of the 1 for 4 issue at par had been well utilised, and the earning rate has been more than main-

tained on the increased capital. Income from all sources had increased over the previous year, and although property expenses and administration costs have naturally increased in line with the company’s expansion, profitability forecast showed a satisfactory increase over last year’s figures, Mr Renouf says.