This article is from the Australian Property Journal archive
TASMANIAN property investor Sabina Corporation is looking to hold the fort this year, unable to secure project funding the company has booked an operating loss of $131,567 for the six months ended December 31, 2008.
This is down from a profit of $7,503 in previous corresponding period.
Chairman Peter Chen said this was entirely due to the fact that revenue from project management fees expected on several projects including the $46 million “UniVillage” Hotel Apartments in Launceston did not eventuate during the period under review as budgeted.
Chen also said the property finance industry has dried up almost completely.
The company has a 40% interest in each of the four active unit trusts in Tasmania and one in Queensland.
He warned that unless project funding is found soon, the property trust for UniVillage would need to look for an equity partner or sell the development site to keep the mortgage liability under control.
At present, the mortgage facility has been given several extensions by the bank to meet the changed circumstances and the trust has been able to fully service the interest.
“If we can hold the fort during this difficult period in 2009 we would be doing well. The operating loss for Sabina is expected to continue in the second half of the financial year as revenue from management fees will only be earned if and when UniVillage and Legana Business Park projects get underway,” he concluded.
Australian Property Journal
