4 Mar 2009

NPT advised not to liquidate

12:20 pm on 4 March 2009

National Property Trust has been advised against liquidation.

It says this would not benefit unit holders.

The company commissioned a report to assess the merits of liquidating its property portfolio, following investor demands.

National Property Trust has around $280 million of commercial, retail and industrial properties.

Their value fell nearly 5% in the six months to September last year, leading to a loss of more than $9 million.

At a unit holder meeting investors demanded that the trust, managed by St Laurence, investigate the possibility of liquidating its property assets.

NPT has also been investigating the possibility of mergers and capital raising.

Chairman, Kevin Podmore says a subsequent report from investment bankers group, Northington Partners, advises against the option of liquidating assets.

With the property market subdued and rents tipped to rise, the report says value to unit holders will be greater if the portfolio of properties is retained.

Mr Podmore says the findings are not surprising, but some non-strategic properties will be sold in order to reduce debt levels.