Dorchester confirms settlement on Queenstown Hotel and announces appointment of hotel manager

3 March 2009

Dorchester Pacific Ltd advises that its subsidiary Dorchester Finance Ltd has completed the purchase of the Goldridge Hotel in Queenstown for $8 million.

The vendor was the Receiver appointed by the first mortgagee. Dorchester Finance had held a second mortgage which secured a loan with a carrying value of $6 million.

Executive Director, Mr. Paul Byrnes, commented: “The purchase of the Goldridge Hotel furthers our strategy of preserving the value of Dorchester Finance’s interest as security holder in those cases where we believe an orderly realisation of property over time should produce a better outcome for stakeholders.”

As part of the adjustments announced at the Annual General Meeting on 17 February 2009, the carrying value of the $6 million loan will be written off. Other adjustments include a write-back to profit of $13 million for interest forgiven under the Deferred Repayment Plan. These adjustments are expected to result in Shareholders Funds at 31 March 2009 being ahead of the September 2008 half year position.

The company also announced the appointment of Penny Clark as General Manager for the Goldridge Hotel. Ms. Clark has twenty-five years of hotel management experience in New Zealand including managing hotels in Queenstown and Christchurch, most recently holding senior executive positions within the Heritage Hotel Group.

Mr. Byrnes commented: “We are delighted to have secured the services of such a well respected and experienced industry executive with a proven track record of planning and managing for redevelopment. Besides managing all aspects and day-to-day operations of the Goldridge Hotel in Queenstown, Penny will also be advising and assisting us with our other hotel property loan positions.”


ENDS