Maiden profit by St Martin’s

Press, 7 May 1987, Page 42

Maiden profit by St Martin’s

St Martin’s Properties, Ltd, the Auckland-based property investor that was listed through the shell of Cromwell Corporation, Ltd, earned a maiden trading profit in its first five months. The net trading profit was $2,368,000, on a turnover of $3,157,000, to March 31. The trading result exceeds a prediction of $1,832,000 made in the company profile in November, when the company was seeking Stock Exchange listing. The chairman, Mr Alan Gibbs, said yesterday that the company’s performance reflected the policy of investing only in prime properties which pro-'

duced above average growth and justified higher rentals in a tight market. The company had essentially been consolidating after its formation late last year. That phase was over and St Martin’s now had a qualified, experienced management team. The managing director, Mr Brian Stebbins, said St Martin’s would be focusing on overseas investments this year. “We have already identified a number of specific opportunities which, providing they meet our criteria on location, quality, and above market growth potential, will more than double the size

of our portfolio by the end of the year.” Mr Stebbins is in North America looking at a number of properties. The result was after providing $137,000 for tax, but before unrealised property revaluations of $2,384,000. No dividend has been recommended by the directors. Rental and interest income contributed $2.4M to the result. The result did not include any revaluation of St Martins’ two largest investments — the Unity Centre in Auckland, and 234 Wakefield Street, in Wellington — neither of which are yet completed.