Landmark investors get second opinion

Press, 19 July 1988, Page 21

Landmark investors get second opinion

NZPA Auckland Two Landmark shareholders have paid for independent valuation of a property the company wants to acquire. Messrs John Yates and Warwick White hired valuer Blincoe Yarnton, Ltd, to put a price on two adjoining buildings at 450 Queen St, Auckland, which are the sole asset of Strymo Holdings. Landmark shareholders will be asked to approve the issue of 34.6 million shares to Strymo’s owner, Richmond Smart Corporation in payment for the full ownership of Strymo at an extraordinary meeting later this month. In a letter the two men

have prepared for mailing to all Landmark shareholders, they say Blincoe Yarnton valued the property at 523.6 M, compared with the $28.4M cited by the Landmark directors. The directors based their statement on a valuation conducted by Sheldon and Partners. Land tax on the site, which covers 4226 sq m would not be able to be passed on to tenants, Blincoe Yarnton said. In addition, a lack of buyers for central business district properties could reduce the figure further, they added.

Messrs Yates and White ask shareholders in the

letter to reconsider the move and to vote against it at the meeting.

Richmond Smart is seeking the shares for Strymo to lift its stake in Landmark above 50 per cent, having bought 25 per cent of Landmark from Mr Oily Newland on July 1. Mr Newland, Landmark’s founder, has since resigned as chairman and as a director. Messrs Yates and White say the Strymo deal was suggested initially as part of Richmond Smart’s arrangements to buy out Mr Newland. Now that this has been achieved, the Strymo deal is no longer necessary, they say.