Page 14 Advertisements Column 2

New Zealand Herald, Volume LXV, Issue 20114, 27 November 1928, Page 14

This Prospectus is not abridged, but is complete in every particular. Investors may therefore use the annexed Application Form without hesitation. Dated the 24th day of November, 1928. A Copy of this Prospectus has been duly filed with the Registrar of Companies at Auckland. In Association with Fuller-Hay ward Theatres. AN ISSUE OF £60,000 of 71/>% Mortgage Debenture Stock IS BEING MADE BY The Majestic Theatre Buildings Limited (Incorporated in 1921). NOMINAL CAPITAL - - £50,000 of which £24,000 is paid up for cash, and Auckland Theatres Ltd. (Incorporated in 1925), NOMINAL CAPITAL - - £30,000 the whole of which is paid up for cash. £57,000 of the said Stock is now offered for public subscription. It is not intended to issue the remaining £3OOO at present. 54,000 Shares in the said Companies ate issued and fully paid for cash consideration, and the whole of the said £54,000 has been expended on the assets covered by the present Mortgage Debenture. The majority of the issued capital is held by the Fuller-Hay ward Theatre organisation, which has a total paid-up capital of £251,750, owns or controls sixty-four Theatres throughout New Zealand, and has an annual turnover of approximately £450,000. Application will be made in due course for the Debenture Stock to be quoted on the Stock Exchanges of Now Zealand. One half of the issue has been underwritten prior to the publication of this Prospectus. The Directors include— Henry John Hayward, of Auckland, Samuel Herbert Leyland, of AuckTheatre Proprietor, Chairman of land, Merchant, Director of the Directors of The New Zealand Leyland O'Brien Timber ComPicture Supplies, Limited. pany. Limited. Philip Henry Hayward, of Auck- Joseph Bertram Grove, of Auckland, Director of Hayward's Pic- land, Merchant, Director of W. tures, Limited. H. Grove & Sons, Limited. Bankers: THE NATIONAL BANK OF NEW ZEALAND, LIMITED. Solicitors: NAPIER, HERMAN & SMITH, A.M.P. Buildings, Queen Street, Auckland. Secretary: K. WALLACE, Public Accountant, Majestic Theatre Buildings, I Queen Street, Auckland. Trustee for the Debenture Holders: THE PUBLIC TRUSTEE. Brokers: G. STEWART CRAIG, LIMITED, 41, Shortland Street, Auckland. P.O. Box 487. Also at 212, Lambton Quay, Wellington. P.O. Box 328. And 172, Hereford Street, Christchurch. P.O. Box 233. GENERAL. In offering the present issue of Mortgage Debenture Stock for subscription, the Directors believe it to be one of the soundest investments yet placed before the public. The property is freehold, and is therefore the best security for mortgage moneys, while its situation in the busiest part of Queen Street is such that its value must increase. The building and fittings are new, modern, and of the highest class. No estimates enter into thia Prospectus, since it deals with the existing assets of a well-established Company. As a final advantage, its association with Fuller-Hayward Theatres is an assurance that the Majestic Theatre itself will always be utilised to the best purpose. THE OBJECT OF THE ISSUE. This issue of Mortgage Debenture Stock is being made with the object of discharging certain liabilities, and of consolidating into one convenient form the indebtedness of the property which is at present divided among several encumbrances at varying rates of interest. THE SECURITY OF THE DEBENTURE HOLDERS. The Mortgage Debenture Stock will be secured by a Trust Deed and Collateral Mortgage, both executed in favour of The Public Trustee as Trustee for the Debenture holders, and registered over the whole of the assets of the Majestic Theatre Buildings, Ltd., and also of Auckland Theatres, Ltd., including its interest as lessee of The Majestic Theatre, as more fully described below. The Trust Deed will provide that no Mortgage or encumbrance (other than the existing First Mortgage for £60,000 to the Public Trustee) ranking in priority to, or equally with, the present issue of Mortgage Debenture Stock may be created during its currency. Assuming that the unimproved value of the land increases by only 10 per cent, in the next 15 years, then such addition, plus the reduction in the first mortgage by the annual sinking fund payments, will mean that in 15 years the unimproved value alone will be equal to the total sum then owing on the mortgage and debenture. ASSETS AND VALUATIONS. The freehold assets are valued at a total of £174,850, copies of the valuations appearing below and the originals being open for inspection during business hours at the offices of the Company's solicitors. It will be seen that the total net value of the assets (after deducting the amount of the first Mortgage to the Public Trustee) is twice the amount of the present offer of £57,000 of Mortgage Debenture Stock. The Directors consider that this is a very ample margin of security. T. MANDENO JACKSON, Auctioneers, House, Land, Estate and General Comminsion Agents. 9, Commerce Street, Auckland, 2nd Nov-jmber, 1928. HENRY HAYWARD. ESQ.. Auckland. Dear Sir,— At your request I have gone fully into the value of the freehold property in Queen Street, upon which the Majestic Theatre Buildings arc erected. The site has a-frontage of 77 feet to Queen Street on the busier side, with a depth of 164 feet to Lome Street, where the frontage again 77 feet, the area being approximately I rood 6 perches. It forms one of the few large freehold sections in Queen Street, and, in our opinion, is a property which must increase in value with the progress of Auckland. The whole of the premises have been well let for the past three years. Other Queen Street sites with considerably narrower frontages and of less depth have changed hands on the comparatively dull market of the last two years at prices of £I3OO and £I4OO per foot. One such site was only 87 feet in depth and with only one frontage. In each case they bore old premises which have been or will be demolished for re-building. Taking these factors into account 1 value the unimproved land at the figure of £96,250, being at the rate of £1250 per foot on the Queen Street frontage alone, and believe this to be on a conservative basis. This site- is ideally situated for a theatre and conforms to all the City regulations, and for that reason a much higher price than I have put on it might easily be realised. Yours faithfully. J. M. Jackson, For T. MANDENO JACKSON. J. T. JULIAN Ac SON, L/TD~ Builders and Contractors. Auckland, N.Z., 7th Novembeh 1928. HENRY HAYWARD, ESQ., Auckland. Dear Sir,— RE THE MAJESTIC THEATRE BUILDINGS. 1 laving been requested to value the a bove-named Premises, which are situated in Queen Street, Auckland, w<s ha.ve pleasure in advising you as follows: The Buildings arc substantially constructed of reinforced concrete and bricks, and occupy the whole of the property owned by the Company, with frontages to Queen Street and to Lome Street. They comprise the Majestic Theatre (which is equipped with a stage suitable for vaudeville performances, and has a seating capacity of 1950 persons), and also four Ground Floor Shops which have frontages to Queen Street, a Restaurant, two Upper Shops. and two Offices. These Buildings were erected in 192425, and are in thoroughly good condition. We have had a larger experience than any other firm in New Zealand in connection with erecting and reconstructing Theatres, and we consider that the value of the Majestic Theatre Buildings is £67,500 (Sixty-seven thousand five hundred pounds), and that they could not be built for less than that sum at the present time. Yours faithfully, J. T. JULIAN & SON, LTD. T. G. JULIAN (Managing Director). Auckland, 16th November, 1928. H. HAYWARD, ESQ. Dear Sir,—l hereby certify that the total expenditure upon the furnishings, fittings and equipment of the Majestic Theatre Buildings has been £ll,lOO, and that the whole of the said material is in thoroughly good order and condition. K. WALLACE, Secretary. THE TERMS OF THE ISSUE. The Debenture Stock is being issued upon the following terms:—PERIOD: 15 years from the 16th day of December, 1928. INTEREST will be paid at the rate of Seven Pounds Ten Shillings per centum per annum, payable half-yearly without any deduction on tho 1 6th day of each of the months of June and December in each year. Under existing legislation tha interest is subject only to Income Tax, at the rate at which the ordinary income of each holder of the stock is taxable (if at all). SCRIP will be issued in any multiple of £25 with a minimum of £SO. It will be made out in the form of Inscribed Stock registered in the name of the holder. TERMS OF SUBSCRIPTION: Either 2/6 in ».he £ on application and the balance on allotment, or 2/6 in the £ on application, and the balance in the following instalments:— 2/6 in the £ upon allotment, and three payments of 5/- each at intervals of three months. Interest will be calculated from the date of allotment on the respective payments as from the dates of payment thereof to the