Opportunities for Mainzeal

Press, 27 January 1988, Page 33

Opportunities for Mainzeal

PA Wellington The downturn in financial markets and commercial activity presented Mainzeal Properties with improved opportunities for future growth, chairman, Mr Peter Menzies, said in the 1987 annual report. . All Mainzeal’s properties in Auckland, Wellington and Sydney were welllet to strong tenants. The directors, therefore, did not expect the current conditions to have any material impact, Mr Menzies said. “Many of the less substantial or more recent entrants to the property sector will suffer under this environment, leaving the market to companies with more enduring qualities,” he said. Mainzeal’s philosophy was for long-term ownership. Land must therefore have location that was continuously desirable, and building structures must have the design, structural and aesthetic integrity to satisfy the changing needs of tenants and investors for many years. After only one year the worth of these principles was already showing, Mr Menzies said.

At balance date the company had no debt against its investment assets of $lOO million, and this was still the case at early December, he said. Last year Mainzeal Properties bought wholly owned subsidiary Kitchener Properties, Ltd, which will own a 480vehicle carpark to be built in Kitchener Street. On completion it will be one of Auckland’s largest private carparks. This was the company’s first step in the group’s plans to invest in carparks, Mr Menzies said. A contract has been let with Mainzeal Group to build it and a management agreement has been entered into with Mainzeal Parking Pty. Mainzeal Properties has also built up a 23.3 per cent stake in Sydneybased Triden Corporation. Mainzeal Properties reported a $2,347,000 net profit for the year ended September 30, 1987. This was achieved on operating profit of $3,398,000, but tax of $514,000 was paid. Share of associate company contributed $611,000, but extraordinaries cost company $1,148,000. x Unrealised were $14,025,000. \