NZRPT suspension to be lifted

NZRPT managers are to lift the suspension on units next month.

Friday, October 3rd 1997, 12:00AM

Listing the New Zealand Rural Property Trust isn't an option the managers are planning to take at present, however they will lift the suspension on unit redemption from November 19.
A year earlier the manager imposed the suspension on the grounds that a depressed rural sector made it difficult to accurately value the trust's assets as there had been a lack of sales information.
The impact of New Zealand's rural depression has seen $14.2 million wiped off the fund's balance sheet through a writedown in property values in the year ending June 30.

While the fund's operating surplus of $2.2 million was static, the revaluation of assets were the major reason for a $10.1 million loss this year, compared to a $2.8 million profit in the previous period.
Chief executive officer Tim Ryan says the fund's total assets now stand at $77 million.
The movement in asset values "were not unexpected given the general uncertainty surrounding rural property values."
At the time of the suspension key financial advisers told the trust's management they thought listing the fund was the best way to solve the structural problems and avoid a third period of suspension.
Ryan says there are presently no plans to go down the listing route, yet it is an option that hasn't been ruled out entirely.
"We are of the opinion that listing is not an option because there's too high a prospect unitholders will lose wealth by doing that," he says.
"The only time you can justify listing is when the market will value trust units at NTA or above."
He says the management now had a much better handle on the value of the trust's assets than a year ago.
"We have been working very hard with the trustee and valuers to tighten up and get current values which reflect the market."
The manager could have extended the suspension beyond 12 months by resolution of a special meeting of unitholders, but chose not to take that course of action.

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