$9.1m sale at resort a let-down for Trinity

Property group Trinity Limited has sold a "significant" portion of its interest in the Cumberland Lorne Resort at a loss just months after announcing a multimillion-dollar write-down on the property.

Property group Trinity Limited has sold a "significant" portion of its interest in the Cumberland Lorne Resort at a loss just months after announcing a multimillion-dollar write-down on the property.

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

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Join the Conversation...

There are comments posted so far.

If you'd like to join this conversation, please login or sign up here

Related Articles