9 Dec 2009

Kermadec sells cinema complex to reduce debt

11:37 am on 9 December 2009

Kermadec Property Fund is selling the Berkeley cinema and retail complex in Auckland at a discount, in order to further reduce its debt.

Kermadec has entered into an unconditional contract to sell the property for $7 million, which is 5% less than the book value of $7.4 million.

The company says the sale will further strengthen its balance sheet by lowering its gearing to about 34%. It says expects to pay a dividend of 5 cents per share.

Kermadec recently sold two properties in Auckland for $7.7 million.