Dorchester Pacific debenture holders will take heart in news that Queenstown's Frankton Arm Apartments have been sold with a book value of $2.3 million.
Dorchester has managed the Dorchester Property Trust since the company went into moratorium in 2008.
"This is a good result and it is especially pleasing to be able to provide these returns to unitholders in the current market environment," Dorchester chief executive Paul Byrnes said.
"While the Frankton Arm Apartments is the smallest of the four properties in the $33 million Property Trust, it still represents about seven cents per unit. Its suitability as a development opportunity for the purchaser has enabled us to secure this sale price."
Sale and purchase would come in two transactions and distribution from the first transaction settlement - about $1.4 million - would be paid out to unitholders in the next 60 days.
Alongside the Frankton Arm Apartments, the trust owns three more established and larger hotel properties - Queenstown's Goldridge Hotel, Gisborne's Emerald Hotel and Christchurch's Parkview Hotel.
"It's the trust's objective to realise those properties and not have to sell them at fire-sale prices," Mr Byrnes said.
All three hotels had been trading comfortably ahead of the forecast included in the June 2010 prospectus, he said.
"While the market remains competitive, occupancy rates across the portfolio have remained high. We are continuing to make strategic investments in the properties, such as the recently completed spa and sauna facilities at Goldridge Resort, and this is helping to ensure that we continue to attract both new and repeat business."
A trust performance update letter to unitholders will ease any concern over the Parkview Hotel complex, which sustained only cosmetic damage in the Christchurch earthquake.
Mr Byrnes said it was still operating at full occupancy.
