Business

Loss reported by property company

12:36 pm on 22 May 2012

Augusta Capital has reported a loss of $650,000 after paying $2 million to terminate its management contract and a property revaluation loss of more than $1 million.

The property company, which changed its name from the Kermadec Property Fund, says the loss compares with a profit of $4.85 million for the previous year.

It says the revaluation loss on the property portfolio was mainly due to abnormally high expenses of 4-point-6 million dollars, most of which came from work at a new Countdown Metro supermarket in Auckland.

Distributable profit fell slightly after divesting $8.5 million of non core assets. Net rental income fell by $500,000 to $6.2 million.