Acadia forecast

Press, 13 December 1986, Page 31

Acadia forecast

PA Auckland Acadia Corporation, Ltd, which is raising $6O million to buy seven hotel properties from Dominion Breweries, Ltd, forecasts a tax-paid trading profit of $2,441,000 in the 12 months to November 28. Total surplus will be boosted to $4,841,000 when unrealised increases in investment property values are included, according to the company’s prospectus. The shares to be issued, 60 million at par 100 c each, do not include a public pool.

Twelve' million have been reserved for allocation to Brierley Investments, Ltd, a further 12 million to Dominion Breweries, Ltd, and 18 million to Kupe Investments, Ltd.

The remaining 18 million have been reserved for allocation by the organising broker, Jarden and Co, Ltd, and other members of the Stock Exchange. The issue is to open and

close on January 13. Funds raised from the issue will be applied principally towards the purchase of assets from Dominion Breweries. The assets include seven hotels trading under the Quality Inns chain as well as an investment in a Queenstown hotel development and the redevelopment of the Royal International site in central Auckland. The estimated total price of the assets involved is $61,602,000. The company intends to adopt a June 30 balance date, which means the initial trading period will be of about sLx months. The first dividend will be an interim in respect of the 1988 year. The net tangible asset backing of the 100 c shares on acquisition of the hotels is 99c based on the acquisition price. This is forecast to rise to 116 c a share at the end of the first year’s trading.