Williams float

Press, 21 October 1983, Page 12

Williams float

From

ADRIAN BROKKING

a in Wellington

One of New Zealand’s largest and best-known property developers, the Williams group, is to float part of its property-owning division to the public.

A prospectus for an issue of 7.5 million 50 cent shares at an issue price of $1 each was filed yesterday. The principal asset of Williams Property Holdings, Ltd, is the 32-level Williams City Centre Building in central Wellington. This comprises 19 levels of office space, five of retail space, two restaurants, a cabaret, and a tavern. The A. D. P. Williams family will retain a 50 per cent shareholding in the company, and the other 50 per cent will be available for public subscription. The organising broker, Francis, Allison, Symes and Company, has taken 2 million shares firm. On the basis of an adjusted balance sheet, the company has a net worth of $17.4 million, represented by capital of $7.5M and the balance in reserves. The net asset backing of each 50c share is $1.16.

The prospectus says that the company has options on land in Kilmore and Durham Streets, Christchurch, and in Jervois Quay, Wellington, and it may exercise these in the future for expansion and development. The Christchurch option secures a prime opportunity where the Williams group in recent years has profitably

developed four commercial buildings, mostly taken up by Government departments. The Jervois Quay option also offers an opportunity to develop what is probably the last undeveloped site at the heart of the commercial area, on Wellington’s waterfront.

The chairman of the new company, Mr A. D. P. Williams, says that a share premium reserve will be established by the public issue and, together with available tax losses, will be available for tax-free dividends subject to the necessary consents. For the first year of operation to December 31, 1984, a tax-free distribution of 5 per cent is envisaged. Bonus issues will be made as appropriate, from the asset revaluation reserves which currently stand at $6.3M.

The directors of the company are: Sir John Marshall, a former Prime Minister, Mr Williams, who is the chief executive; Mr J. E. Aburn, a Wellington sharebroker; Mr L. W. Brown, a well-known Auckland solicitor and company director; Sir Robertson Stewart, of Christchurch; and Mr C. M. Wright, who is a director of other companies within the Williams group. The issue will open on November 14, and remain open until November 25 unless subscribed in full earlier.