Weekly briefs

NZRPT capital repayment, Watch out for the Big Red Shed, Equitable increases rates, Offer extended.

Monday, November 29th 1999, 12:00AM

The New Zealand Rural Property Trust is due to make a $6.9 million capital repayment to unitholders on December 17.

The repayment, of 12.5 cents per unit, has come about as part of the trust's move to a closed end structure.

Chief executive Tim Ryan says under the open-ended structure the money would have been used to fund unit redemptions.

Making a capital repayment was a capital repayment was a considerably fairer means of returns cash to unitholders, he says.

"As a result of this cash repayment all unitholders receive a cash payment on an equal basis, as against the selective payments made under the redemption system.

He says the trust had "well advanced plans" to take advantage of new investment opportunities.

The big red shed's coming

Discount retailer the Warehouse has signalled its intention to move into the financial services area.

Chief operating officer Greg Muir says a joint venture with a big trading bank was being set up in the next two months which would put the Warehouse firmly into the financial services sector.

While details of its move into this area are not yet known, it is rumoured that the bank involved is WestpacTrust.

Offer extended
Balclutha Holdings Ltd has secured acceptances from Donaghys Limited shareholders for 92.97 per cent of Donaghys shares, but would extend the offer for a further two weeks to allow latecomers to sell into the offer.

Balclutha was formed several months ago by Donaghys managing director Ross Callon and AMP Asset Management, as a vehicle to bid for all Donaghys shares at $1.50 each.

Having passed the 90 per cent level Balclutha will be required to move to compulsory acquisition once it declares its offer unconditional. It is likely at this stage that the compulsory acquisition process will delay payment to the 7 per cent of shareholders who have not yet accepted the offer.

Equitable raises rates
Equitable has decided to raise its tax paid and taxable investment rates.

Group general manager Philip Markwick says the company is experiencing an unprecedented high level of excellent mortgage opportunities.

The tax paid rates when grossing them up by either 33 per cent or 19.5 per cent provide excellent returns, he says.

Equitable's five year rate of 5.7 per cent tax paid is the equivalent of 8.51 per cent gross at 33 per cent.

He says a change of Government will make the tax paid, or "hidden wealth", investments look even more attractive as they look to increase tax rates to meet election promises.

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