Mayfair still confident

Press, 24 September 1988, Page 34

Mayfair still confident

PA Auckland Investors with up to $500,000 are still showing confidence in the property market despite the withdrawal of major funds, says Mayfair Corp’s managing director, Mr Gerald Williams. Mayfair was hit by the sharemarket collapse last October, by Government announcements on superannuation in December and again by the uncertainty in the superannuation industry since July announcements. The company posted a $6 million loss for the year to March 31 after

recording a gross trading profit of $3.8 million. However, it paid $2.2 million to get out of the Queen’s Head project on Queen Street and set aside $5 million for further possible losses in property sales. Mr Williams said in a comment on Mayfair’s annual result that provision was a prudent one to allow sales below book value but did not mean the company would go to fire sales. Since balance date, Mayfair has sold $3O million of property, but is still proceeding with de-

velopment work, particularly on smaller industrial sites. “It is back to where we were in 1978-79 when we started business. We had to have it leased and sold then. “But I should say the market should be coming back within 12 months.” Though superannuation funds were looking overseas to invest, they were sitting on large piles of money and as soon as the rules were sorted out they would starting spending here. “It is still easier for local funds to invest locally,” Mr Williams said.