St John Balanced Property Fund Limited
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| Investment Type | Limited Liability Company - two property syndication |
| Auditor | KPMG |
| Make up of Investment Parcel | Ordinary Shares (see Fund Issues below for information on the 9 July 2009 conversion to all Shares). Shares may be transferred in quantities of not less than 1,000. |
| Issue Date | 15 February 1999 |
| Net Asset Backing per Parcel | $1.84 per Share as at 31 March 2010 |
| Distribution Dates | Dividends (when declared) are scheduled for payment in May and November each year |
| Fund Issues | In July 1999 each parcel issued by the Company comprised one Mortgage Bond and 1,000 Ordinary Shares. On 9 July 2009 each Mortgage Bond was converted to 2,286 Ordinary Shares. Following conversion investors held 3,286 Ordinary Shares for each parcel held prior to conversion. The Board’s current dividend policy is to endeavour to pay 90% of the net surplus after tax before property gains, as dividends to shareholders semi-annually. The first dividend payment was made in November 2009 in respect to the broken period of 9 July 2009 to 30 September 2009. Thereafter the Company expects dividends payments to be made in about May and November each year in respect to the respective six month periods ending 31 March and 30 September. |
| Fund Issues updated | 4th June 2010 |
Property 1
| Location: | Canterbury Arcade, 166-175 Queen Street, Auckland |
| Issues | This property was sold in November 2009. |
Property 2
| Location: | Walton Plaza, Albert Street, Whangarei |
| Current Valuation | $13,000,000 |
| Tenant Information | Walton Plaza has performed well over the last 12 months but, as indicated in our last report, is moving into a period of tenancy vacation. Accident Compensation Corporation will be vacating at the end of this year and will result in the property having a vacancy level of 8.7%. In addition, NZ Police have advised us that they will be reducing their required area next year when their lease comes up for renewal. We are endeavouring to negotiate a new six year lease on the space that they wish to retain. The decrease in value as at 31 March 2009 was in line with our own projections. We have three rent reviews due in the middle of the year and are projecting modest increases in these rentals at an average of approximately 3%. We are now working with the local real estate agencies in respect to the likely future vacant space. This will require some expenditure being incurred to refurbish the vacant areas and meet other leasing up costs. As such the building’s performance will be affected during the next 12 months. The focus for management will be securing new tenants and improving the WALT for the property. |
Property 3
| Location: | Bunnings Warehouse, Manukau Supa Centre, Manukau |
| Current Valuation | $15,400,000 |
| Tenant Information | This property has continued to perform to expectation and has proven to be a well performing, easily managed property. The decrease in the valuation of the property as at 31 March 2009 was disappointing as, whilst it was consistent with the overall market decreases experienced by other property holding institutions, we were hoping that any decrease in value would have been minimal given the quality of the tenant and duration of the lease. Although we expect to see a continuation of the current difficult economic conditions, especially with regards to property, the property's good long term lease profile to a significant tenant should ensure that there is no significant change to its underlying performance. |