Shanghai tannery to benefit from $12.5 million investment programme
Shanghai Richina Leather (SRL) is to be the joint beneficiary of a NZ$26.5 million ($12.5 million) investment programme, funded from the proceeds of the sale of a Wellington, New Zealand, tower block by parent organisation, Wellington-based Richina Pacific.
Approval for the sale of the 25-storey Mobil-on-the-Park retail, car parking and office tower for NZ$66 million was given at a special meeting of Richina Pacific shareholders in Auckland, yesterday. The buyer is the European investment firm, Navire Holdings Limited, who will pay an immediate deposit of NZ$6 million and settle the balance by June 30 2003. When the transaction is complete, Richina Pacific will record a profit on the sale of NZ$2.48 million. After meeting sale costs and repayment of the mortgage funding, a cash surplus of NZ$26.5 million will be generated.
In announcing the investment programme, which will also benefit the Richina Pacific subsidiary Mainzeal Construction, Richina Pacific chairman Alastair MacCormick also referred to the ‘above budget performance’ posted by SRL during July.
"The sale of Mobil-on-the-Park will allow for further strengthening of our balance sheet, and with the cash generated, will provide some support for our fast growth leather business," said MacCormick. "While Richina Pacific’s profits of NZ$4.2 million were slightly down on the year before, the previous year’s result included the exceptional profits earned by Colyer Mair and Mair Venison, which were sold last year." (For that story, go to leatherbiz.com news section and enter ‘Colyer Mair’).
