Landmark gears up

Press, 16 July 1983, Page 21

Landmark gears up

PA Auckland The general drop in interest rates, which are expected to drop further in the months ahead, is the most important change to have occurred in the property market since Landmark Properties, Ltd, began trading 12 months ago, the chairman, Sir George Chapman, says in the annual report.

Sir George says that whereas interest rates in May last year made it uneconomic to raise mortgage finance on properties, except for short term reasons, the reverse is expected to apply in the rest of this year.

Sir George says there is also an important factor which will influence capital gains on commercial properties. Because of the high level of inflation over the last 10 years, a substantial gap now exists between the present market value of established, properties and the replacement cost of those properties. This ensures that existing prime commercial properties will have significant rises in value in the years ahead, he says.

Sir George says that at balance date, March 31, the total value of investment properties purchased was $11.75 million. Total assets exceeded $l4 million and shareholders’ funds increased from $5 million to $6.2 million.