Freeze hits Grosvenor

Press, 10 November 1983, Page 23

Freeze hits Grosvenor

The rent freeze is one of the reasons given by Grosvenor Properties, Ltd, for a drop of 4.5 per cent in its gross rentals for the six months to September 30. In a report released yesterday, the directors say that the property company showed a group net profit of $109,213 from gross rentals of $572,717. This result is down 13.3 per cent on the previous cor-

responding period and includes capital profits of $7109 arising from the sale of a building. Besides the rent freeze, other factors for the fall in gross rentals include the repayment of $l.l million of maturing and debenture stock, made partly by the sale of property and partly by cash. In addition, no property revaluations were made in the half-year, but they will be

included in the annual accounts. The rent freeze is estimated to be costing Grosvenor about $114,000 on an annual basis in gross rentals, based on valuations of properties with rent increases deferred by the freeze, the directors say. The profit was after providing $17,551 less for tax at $54,847.