Emerald Gisborne Property Trust sells final hotel

Trust set up to refinance Dorchester Pacific in 2010 sells final hotel

By Edwin Mitson

May 11 (BusinessDesk) - Emerald Gisborne Property Trust, the hotel investor set up as part of the recapitalisation of the financier and insurer now known as Turners, says a deal to sell the Emerald Hotel in Gisborne has gone unconditional.

The trust was formerly known as the Dorchester Property Trust and at the time of its establishment in 2010, owned four hotels estimated to be worth $33 million. The deal to sell the Emerald means that all of the hotels have now been sold. The only remaining assets in the trust is a penthouse and an apartment in the Emerald complex which are being marketed separately.

Units in the trust are listed on the Unlisted platform and were created when 7,200 Dorchester Pacific debenture holders owed $84 million swapped their debt for the units along with shares in the finance company, three-year interest-bearing notes, and options to buy more stock as part of a deal to keep the company going.

The sale of the Emerald Hotel is due to be settled on June 14. Total proceeds are expected to be just under $6 million before selling costs or 40 cents a unit. Prior to going into a trading halt, the units were trading at 38 cents. The remaining penthouse and apartment are expected to raise $700,000 before selling costs, and this hasn't been included in the 40 cents a unit figure.

Management says it expects an initial distribution to unitholders will be made by the end of June.

(BusinessDesk)

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