Healy bros would get Irongate-linked fund below valuation

Healy brothers would get Irongate-linked fund below valuation, Rockpoint says

July 8 (BusinessDesk) – Auckland property investors Ross and Ken Healy would get the St John Balanced Property Fund, which is linked to the failed Irongate property Ltd., at below its valuation, according to an independent assessment from advisory firm Rockpoint Corporate Finance.

The Healys, through Rockport Holdings Limited Partnership, have offered $1.20 a share for the shares of St John they don’t already own. They are certain to succeed in gaining control because Rockport has already acquired 19.9% of St John from Irongate and have a lock-up agreement to acquire its remaining 32.35% as part of a full takeover.

Rockpoint’s independent report assesses the value of St John at $1.91 to $2.21, with a mid-point of $2.10, meaning the Rockport offer represents “a material discount to the assessed per share valuation range.”

In its offer document, Rockport says its main target in making the acquisition is a subsidiary of St John, called St John Whangarei Ltd. which owns an office building at 450 Queen St, Auckland, which was valued as at May 24 at $20 million, assuming completion of $2.56 million of capital works.

Shares of St John trade infrequently on the Unlisted platform and last changed hands at $1.15 on May 27.

Rockport Holdings’ co-investors are Terry Gould and John Gosney. Its proposal values St John at $8.6 million.

St John Balanced Property is managed by Kevin Podmore’s Cambridge Asset Management Ltd.

(BusinessDesk)

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