Dorchester Achieves Milestone in Loan Recoveries
1 April 2010
Subsidiary Dorchester Finance advises that it has recovered repayment of its largest outstanding property loan at just ahead of book value of $3m. The loan had been secured by a second mortgage over a 650 ha block of land in Turangi.
Executive Director Paul Byrnes commented: “This is a milestone for Dorchester. Over the last 2 years we have discharged around $30 million of prior securities and this loan was our last second mortgage position. There are now no prior security holders ahead of Dorchester on outstanding positions”.
“The property loan book is now substantially tied up in 4 hotel property positions owned by the Group. As recently reported, operating performance of the hotels has been significantly improved under the Deferred Repayment Plan. The Hotels have been earmarked for settlement into a Property Trust for investors as part of the Capital Reconstruction Plan currently with Trustees for approval”.
ENDS