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St Laurence Launches $10 million capital offer

Published: Wed 1 Nov 2006 09:26 AM
News Release, 1 November 2006
St Laurence Launches $10 million capital notes offer
Property investment and finance group St Laurence Limited has launched a $10 million capital notes offer to fund its growing lending, funds management and asset management business activities.
St Laurence may accept over-subscriptions of up to a further $10 million. The capital notes are fixed interest unsecured debt securities providing a return to investors of 10% pa, 10.25% pa and 10.5% pa, for approximately three, four and five year terms respectively. The minimum investment is $5,000, and then in multiples of $1,000.
St Laurence managing director Kevin Podmore says: “This capital raising is part of St Laurence’s ongoing strategy to maintain and expand our position as one of New Zealand’s highest quality property investment and finance groups.”
“The capital notes offer has been made in response to the demand for this type of product from our investor base, particularly following the recent $23 million equity injection and acquisitions to strengthen the company.”
Recent acquisitions by St Laurence Limited have brought a number of companies under one umbrella to form a company that manages more than $1 billion in assets with specialised property investment, asset management, funds management and lending activities. The transactions have significantly strengthened the business and its financial position.
“St Laurence is now very well placed to continue to grow this business. The offer will provide St Laurence Limited with access to longer-term funds and further liquidity to enable continued growth in a controlled manner,” he says.
Mr Podmore says the company is currently seeing greater opportunities within the sectors St Laurence is involved in. “We are seeing an increase in property enquiries and opportunities being presented to us, however we continue to be selective in the opportunities we pursue.”
As well as seeing good demand within the lending business, St Laurence has several significant and ongoing funds and asset management contracts that derive stable and long-term incomes to the group. The group also has an established track record of participating in significant and successful property-related ventures. It has achieved this by using its financial and investment skills to identify opportunities and uses its extensive property networks to realise the opportunities. Mr Podmore says demand for St Laurence Limited secured debenture stock amongst the investment public continues to grow. Reinvestment has also remained strong in a market where investors are now looking to put their money in quality finance companies that set themselves apart from the rest.
“We are making this offer on the back of our recently strengthened position and increased market demand for our investment products,” Mr Podmore says.
The capital notes offer opens this week and will close on 31 March 2007 or earlier if fully subscribed, with daily allotments over this period. The capital notes will mature in January or March 2010, 2011 and 2012 depending on the term selected by the investor. Interest on the capital notes will accrue daily from the date of allotment and, depending on the option chosen by the investor, will either be paid quarterly or compounded quarterly.
BACKGROUND
Australasian investment and finance group St Laurence has been active in property investment and finance markets since 1995, and very recently created a substantial property-based funds management business under a single company, St Laurence Limited. As well as being a financially robust company with significant property-based assets and diversified income streams, an injection of new share capital has significantly strengthened the company’s capital base. St Laurence focuses on four main areas of business activity - funds management, asset management, funds investment and property-based lending. The group manages more than $1 billion of assets for over 16,000 investors, and provides a range of property-backed fixed interest and other property-based investment products.
ENDS

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