Fund of New Zealand expands centre

Press, 11 February 1981, Page 23

Fund of New Zealand expands centre

PA Auckland Fund of New Zealand, the property-based unit, trust, has let a contract for the completion of the Chartwell regional shopping centre in Hamilton. The value of the contract, awarded to Holman Construction. Ltd, of Hamilton, is about $l.B million. Work will start immediately and is expected to be finished in time for Christmas trade this year. The chairman of Fund of New Zealand Services, Ltd, (Mr D. L. Hazard) said that the funds, to complete the project were assured. He said the fund had cash in hand of about $300,000, a further $300,000 was immediately forthcoming from a matured mortgage, $500,000 from settlement of a property sale, and $lOO,OOO from unit holders who had!

I invested in a contributory second mortgage. : The balance would be ar- , ranged as bridging finance, : Mr Hazard said, although i this might not be necessary i if a further property sale, at present being negotiated, was completed in time. ; Mr Hazard said that although one property from ' the fund portfolio had been sold and another was likely to be sold in the very near ! future, the best properties had been retained. The directors had been ■ careful to ensure that the ■ fund remained viable, he said, ■ and that there would still be ! a surplus on an operating basis. i Fund of New Zealand was i established in 1971 and began its association with Chartwell in 1973. Chartwell Regional Centre, Ltd, is wholly-owned by Fund of New Zealand. At I March 31, 1980, the book

value of the property was given as $3,755,447 after deduction of $508,544 accumulated depreciation. Independent valuers indicated a market value of $3,700,000 at March 21, 1979, and estimated the value of the centre on completion, fully let, “in the order of $6 milion.” At last balance date, the profit and loss appropriation account was in deficit of $1,854,348. The cost of the complex as it is at present was $4,255,000. and the total cost of the completed centre will be about $6.2 million. The manager of Holman Construction, Ltd (Mr B. Darke) said the construction industry was as depressed in Hamilton as anywhere else in New Zaeland, and the contract was a welcome addition to the company work schedule.