$9.1m sale at resort a let-down for Trinity
The $9.1 million deal involved the sale of 23 freehold apartments, conference centre and the resort manager's apartment, as well as the management rights over 91 strata-titled apartments in the 4.5-star Victorian coastal resort. Trinity estimates it lost $1.9 million in the transaction after costs, according to its announcement to the ASX.
The Trinity Property Portfolio had valued its Lorne holding at $17.7 million - including management rights - last June, but it was downgraded to $14.51 million in December. The write-down was blamed as the primary cause of the company's $3.7 million loss last year.
"The write-down reflects the depressed market conditions being experienced by the coastal leisure property sector and was also influenced by the recent marketing campaign that occurred for the [resort]," according to the group's half year financials.
Following two earlier apartment sales and a recent deal for a penthouse, Trinity will be left with only 14 apartments in the resort. These will be sold individually over the 2013 and 2014 summer seasons.
Trinity estimates the three sales will return a profit of $400,000 and the 14 apartments could generate an additional $1 million in profit.
The deal comes on the heels of another lacklustre sale for Trinity, which sold a 3000 sq m office building in Mulgrave for $7.7 million after valuing it at $7.7 million.
cvedelago@theage.com.au
Twitter: @chrisvedelago
Frequently Asked Questions about this Article…
Trinity sold a significant portion of its interest in the 4.5‑star Cumberland Lorne Resort — including 23 freehold apartments, the conference centre, the resort manager's apartment and the management rights over 91 strata‑titled apartments as part of the $9.1 million deal.
Trinity estimates it lost about $1.9 million on the transaction after costs, according to the company's announcement to the ASX.
The group’s half‑year financials said the write‑down reflected depressed market conditions in the coastal leisure property sector and was also influenced by the recent marketing campaign for the resort.
Trinity’s Property Portfolio had valued the Lorne holding at $17.7 million in June, downgraded it to $14.51 million in December, and the write‑down was blamed as the primary cause of the company's $3.7 million loss for the year.
Following the recent sales and a penthouse deal, Trinity will be left with 14 apartments at the resort. The company plans to sell those remaining apartments individually over the 2013 and 2014 summer seasons.
Trinity estimates the three recent sales will return a combined profit of about $400,000, and it expects the 14 remaining apartments could generate an additional $1 million in profit.
Yes — the company also sold a 3,000 sqm office building in Mulgrave for $7.7 million. The article described that outcome as another lacklustre sale, noting it sold for the same value it had been valued at.
According to Trinity’s own disclosures, the sale and earlier write‑down reflect depressed market conditions in the coastal leisure property sector, suggesting weaker demand and pricing pressure in that segment at the time.
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