1 Dec 2008

St Laurence property company posts $34m loss

1:29 pm on 1 December 2008

Property investment company St Laurence Property and Finance has posted a loss as the economic recession hits the property sector.

The company lost $34.8 million in the six months to September, compared to a $19.5 million profit in the same period a year ago.

St Laurence says the value of its portfolio has fallen by nearly $23 million.

It also wrote off bad debts from riskier development projects of nearly $10 million, while its equity investments lost another $4 million.

St Laurence Property and Finance executive chairman Kevin Podmore said the company is selling properties to reduce debt, including three almost for their book values.

The property investor is owned by ailing finance firm St Laurence, which will seek investor approval to restructure repayments to them on Friday, after freezing their funds in June.