Dorchester advises settlement on Christchurch Hotel

21 August 2009

Dorchester Pacific Ltd advises that its subsidiary Dorchester Finance Ltd has completed the purchase of One Riccarton Road (Parkview) hotel for $10.2 million.

The property comprises a ground floor bar, restaurant and commercial space currently leased to Dominion Breweries until 2014 together with three floors of serviced hotel units.

Dorchester appointed a receiver over the property in April 2009 and paid out the first mortgagee at that time.   There is no cash impact or adjustment required to provisions as a result of the purchase.

Executive Director Mr Paul Byrnes commented;  “The purchase is in line with our strategy of preserving the value of Dorchester Finance’s interest where we believe an orderly realisation of property over time will produce a better outcome for investors and shareholders.

“The receivership successfully resolved issues around the previous ownership.   We are looking forward to working with the manager of the hotel to improve occupancy and operating performance in the coming months”.

ENDS