St Laurence says that its $9.5 million fixed interest Princes Wharf Hotel Bond has closed over-subscribed by $2.32 million.
The bonds pay 10.25% annually for three years and are secured by way of a second mortgage over the Hilton Hotel building on Auckland’s Princes Wharf, which contains a 5-star, 166 room boutique hotel.
The property which is being bought for $51 million is funded by this offer plus a $15 million of equity and a mortgage from the ASB Bank.
“We have wanted to acquire an interest in the hotel for some time; we regard it as an extraordinary investment opportunity given its location and the fact that the Hilton Hotel is a proven hotel operation with considerable growth potential,” St Laurence’s managing director Kevin Podmore says.
IRD warns against income splitting through trading trusts
Inland Revenue has warned professionals and others who are reducing their taxable income by operating through trading trusts.
Following a ruling by the Taxation Review Authority (TRA), the department warned people to "consider taking advice" as the arrangements may be subject to review by IRD. IRD had been asked to comment on common structures which have the effect of income minimisation, involving income generated from professional or skilled services using trusts. [MORE]
Chances of rate rise increasing
Economists are divided as to whether the Reserve Bank will raise interest rates on Thursday with a narrow majority expecting no change.
The latest Reuters survey shows eight of 14 economists expect no change to the official cash rate (OCR), currently a 6.5%, but six expect Reserve Bank governor Alan Bollard will raise the rate to 6.75%.
ANZ/National Bank recently changed its view and is now expecting a rate hike on Thursday and is also predicting a further increase in April. Economist Cameron Bagrie says the change of mind came when the bank updated its quarterly economic forecasts. [MORE]
Best places to work
The Securities Commission was named as one of the Top 20 workplaces in New Zealand by I magazine.
“It is a great tribute to Commission staff that they have fostered a supportive, collegial and enthusiastic work environment while delivering increasingly good outcomes for New Zealand capital markets. They are a creative, fun team who enjoy working together and who are extremely professional and dedicated as well,” executive chairman Jane Diplock says.
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