You are using an older browser version. Please use a supported version for the best MSN experience.

Pyne Gould back in black

NZ Newswire logoNZ Newswire 1/03/2017 Paul McBeth

Pyne Gould, the financial services firm controlled by managing director George Kerr, returned to profit in the first-half as its Queenstown property development came to market in the tail-end of 2016.

The NZX-listed, Guernsey, UK-based company posted a profit of PS2.9 million, or 1.09 pence per share, in the six months ended December 31, turning around a loss of PS1.5 million, or 0.51 pence, a year earlier, it said in a statement released to the stock exchange after trading closed on Tuesday.

That included PS7.5 million of net income from Pyne Gould's land developments and resales.

Pyne Gould has targeted distressed assets through its Torchlight Fund LP, a division it set up in 2009 to house toxic Marac Finance property loans that needed a longer timeframe for value to be realised as part of the recapitalisation of the finance company.

Those investments include a cornerstone stake in ASX-listed Lantern Hotel Group and 100 per cent of residential land investor RCL, which has a land-bank of 4,000 sites across Australia and New Zealand.

RCL's Hanley Downs development near Queenstown was rezoned in the third quarter of 2016 "and has begun the process of unlocking cash value over time" with the first stages of the project "released to the market in the latter part of 2016" and 175 sections selling in line with list prices, Pyne Gould said.

The shares last traded at 23.5c, and are down 4.1 per cent over the past 12 months.

image beaconimage beaconimage beacon