St. Lawrence (STL010, STL030, STLFA)

[winner69]

Sorry mate - I was mistaken. Westpac have moved from 55 Molesworth St. Where they were is empty at the moment and the whole building looks pretty empty at the moment

Must be a fair chunk of their portfolio .... sitting empty

[Newman]

Sorry mate - I was mistaken. Westpac have moved from 55 Molesworth St. Where they were is empty at the moment and the whole building looks pretty empty at the moment

Must be a fair chunk of their portfolio .... sitting empty

The announcement 2 days ago (copied below) is probably the best news for STL030 bond holders in the past 6 months. Irongate Property was innovative in turning $6.5 million to $14.5 m in cash by selling Walton Plaza (it has 52% interest of the $12.55 m sale) and selling its property on 450 Queen St to its subsidairy (St John Balanced Property Fund) for $14.5 m.

With $14.5 m in hands Irongate Property has a few options: 1) buyback STL030 bonds on market at a large discount; 2) paydown bank debt and negotiate a new one (current one is due on 31 May 2011); 3) negotiate a new deal with STL030 bond holders; and 4) refurbish some building and win new lease contracts. Whatever it does, Irongate Property is now in much better position than 4 weeks ago when Perpentual Trust said it would review Irongate Property.

---------------------------------

St John Board Announces Changes to Property Portfolio
St John Balanced Property Fund Limited (St John, the “Company”) announced today that its wholly owned subsidiary, St John Whangarei Limited, has sold Walton Plaza, Whangarei for $12.55 million and purchased 450 Queen Street, a multi, level office building located in the upper Queen Street area of Auckland, for $14.5 million.

The sale of Walton Plaza was at a 4.2 percent discount to its book value and involved St John providing $550,000 of short term funding assistance.

St John Whangarei Limited Director Chris Minty says “450 Queen Street represents an attractive added value opportunity for the Company. The Vendor, St Laurence Properties Limited, had recently negotiated a new 12 year to the existing major tenant, Whitirea Community Polytechnic, subject to certain leasing costs.

These leasing costs are budgeted to total $3.1 million and include the provision of new air-conditioning and a facelift to the building. The market value of the property on completion of the works and commencement of the new lease has been assessed by valuers, Jones Lang LaSalle at $20 million.

St John has raised $5 million of bank debt to assist funding the acquisition and associated leasing costs.

“The repositioning of the portfolio has improved the quality of earnings for the Company and its shareholders. The Weighted Average Lease Duration will increase to 8.9 years and pre-tax earnings per share is forecast to increase to 15 cents per share. The unaudited net asset backing of St John shares is forecast to increase to $2.00 following commencement of the new lease.” Mr Minty said.

Mr Minty also advised that there had recently been a change in property manager, as a result of Cambridge Asset Management Limited acquiring from St Laurence Funds Management Limited, St John’s management contract late in 2010. All information, including St John’s published Annual Reports can now be found at www.cambridgemanagement.co.nz.

ENDS



For further information, please contact:

Kevin Podmore
Director
St John Balanced Property Fund Limited

Phone 04-903-4826 DDI
Mobile 021 273 2723


BACKGROUND
St John Balanced Property Fund Limited was established in 1999. Active property investment company, Irongate Property Limited is majority shareholder with 52.25 percent ownership. More information on St John can be found in the website of the Manager of the Company, Cambridge Asset Management Limited at http://cambridgemanagement.co.nz/Our...y+Fund+Limited

[getontoit99]

Bluestone pulls out of talks to buy management contracts for the St Laurence linked Irongate Property

[With thanks to interest.co.nz)

In a potential blow for the 9,000 investors in failed property financier St Laurence, Bluestone Capital Management has withdrawn from talks to buy two contracts to manage Irongate Property from St Laurence's receiver Deloitte.

Bluestone says it has pulled the plug on discussions that might have led to it taking on Irongate's asset and investment management contracts. This follows several months of talks with the Kevin Podmore-chaired Irongate and Deloitte. Bluestone CEO Peter McGuinness told interest.co.nz amonst other things, Bluestone's objectives included helping Irongate manage its NZ$50 million retail bond repayment due in May this year.

“Despite our offer to work more closely with Irongate to tackle some of the challenges facing the business, the current manager and the board of Irongate ultimately concluded that there were preferred alternatives that should be explored in managing its funding obligations," said McGuinness.

"To avoid further confusion in relation to our potential involvement in the management of Irongate, we have therefore written to the board of Irongate indicating the withdrawal of our interest in the management contracts."

St Laurence also owns a 34% stake in Irongate, formerly St Laurence Property & Finance. An insolvent St Laurence was tipped into receivership by its trustee Perpetual Trust last April owing NZ$245 million to about 9,000 investors. Receiver Barry Jordan of Deloitte told interest.co.nz in December that the prospect of St Laurence's investors' getting back the promised up to one third of the money they're owed depended on the fate of Irongate Property.

Jordan also said in December, however, that the receivers had talked to other parties as well as Bluestone who were potentially interested in taking over Irongate's management and he hoped to have a deal done by the end of January. Irongate has been in breach of two Trust Deed ratios, with trustee Perpetual Trust leaving itself the option of pulling the plug. It faces repaying the NZ$50 million of bonds, paying 9.25% per annum, on May 15 to about 1,500 investors.

In June last year Bluestone arranged a NZ$45 million loan for Irongate with US vulture fund Varde Partners which enabled Irongate to repay NZ$30 million of bonds that matured last July. Irongate also owes money to Westpac and BNZ. Combined with the Bluestone loan, this debt stood at NZ$87.2 million as of September 30 last year.

St Laurence investors received their first repayment, 9 cents in the dollar, last month.

[getontoit99]

STL
18/02/2011 10:22

GENERAL: STL: Irongate Property Ltd Provides Trust Deed Waivers Update

As announced prior to Christmas, Irongate Property Limited (Irongate, the "Company") notified the Trustee, Perpetual Trust Limited (Perpetual) of two Trust Deed ratio breaches caused by valuation losses and provisions recognised in its unaudited half year result. A temporary waiver of both breaches was sought and Perpetual's board notified Irongate that it declined to grant a waiver of either breach at that time and reserved its position until the end of January 2011.

The board of Irongate has today announced that Perpetual has advised the Company that it continues to reserve its position in respect of those breaches and will continue to review its position as information is provided by Irongate. Irongate has advised Perpetual that it will provide further information in the week commencing 21 February 2011.

ENDS

For further information, please contact:

Kevin Podmore
Chairman
Irongate Property Limited
Phone 04 903 4826
Mobile 021 273 2723

[Newman]

As reported on Sunday Star Times:

http://www.stuff.co.nz/sunday-star-t...e-offers-to-go

It seems that Podmore is refusing to sell buildings at the current market, and bondholders have to accept an extention to the mature date (May 15).

While newsmedia focus on the $50 m bonds Irongate Property has bank debt of ca $37 due at the end of May. It is hard to image Irongate Property is able to get $87 m to pay back both.

While the Perpentual Trust has not announced a decision on Irongate Property it has little options other than letting Irongate Property to continue trade. Puting it in receivership does not help bondholders much though threating to do so would push Kevin Podmore out.

[getontoit99]

It seems that Podmore is refusing to sell buildings at the current market, and bondholders have to accept an extention to the mature date (May 15).

Hi Newman. Sorry to be blunt but, is this statement speculation on your part or are there facts involved?

[Newman]

Hi Newman. Sorry to be blunt but, is this statement speculation on your part or are there facts involved?

I unsucsessfully tried to find out which real estate agents work on selling the remaining buildings of Irongate Property. Assuming Irongate Property get Perpentual Trusr's permission for an extention of STL030 bonds it is in shareholders' interest not to sell buildings now.

The property on Quay Street in Auckland would be saleable at two thirds of its valuation, which would be good to bondholders but bad for shareholders.

[Newman]

The disaster in Christchurch, where the head office of Perpentual Trust has 10 staff unacconted, would suggest that the planned meeting between irongate Property and the Trust either did not proceed or did not arrive a conclusion.

In one sense, no meeting or no conclusion is good news for STL030 bonds. Irongate Property would not be foolish not to find money to pay bondholders back and put itself into receivership. The wording in a statement from Bluestone indicate it prepares to lend money to help pay the bonds (as long as its plan to control Irongate Property at a minimum cost is not blocked by Irongate's directors).

[Newman]

1.25 million shares of Irongate Property were traded at 0.5-1.0 cents just before the unlisted market closed. It seems that a large shareholder had some information that is unknown to the market. The shareholder must know that Irongate Property has no chance to survive. Othewise he would not sell 1.25 million share for $6700.

[Romulus]

Hi Newman, I follow your comments with interest as you seem to have a reasonable handle on Irongate. I downloaded the major s/holders from Companies Office and their is one major holder that has been seller for awhile. INVESTMENT CUSTODIAL SERVICES LIMITED (ICSL who resides in ASB bank centre Ak) did hold last time I looked 23,963,711 and they are the only large holder that could of unloaded the 1.25m yesterday plus others over the last couple weeks/months (suspect the same seller for most trades). The next largest holder is SL fund Mgmt Ltd with 51,320,694 now under the control of Reciever. I am assuming that ICSL respresents more than one shareholder and it may be a forced seller or as you indicated a informed person. Any further thoughts?