$13m apartment deal goes unconditional

07.09.05
By Anne Gibson


A much-flagged deal by listed property specialist Blue Chip to buy $13.4 million of Auckland apartments has gone unconditional.

Blue Chip is buying 51 apartments and 22 car parks at the Darlinghurst, Guardian, Unilodge, Courtney Mews, Portland and The Crescent apartment buildings from Empress Leisure.

It will pay $11.7 million in cash and the rest by issuing 1.4 million shares at $1.20.

Although Blue Chip announced the deal earlier this year, a short time later the deal failed to go unconditional.

Blue Chip has also bought two strata title floors in a Sydney commercial property at Walsh Bay from Australian developer Tesrol.

The floors will gain income by being leased to business clients and will house the head office of Blue Chip's Australian subsidiary, Blue Chip Financial Solutions.

The company paid A$6.490 million ($7 million) for the two floors, with A$4.1 million cash and the remainder in 2.3 million Blue Chip shares to be issued at $1.10 each.

In a third deal, a Blue Chip subsidiary bought New Zealand Finance & Investments. There is a minimum price of $3 million and a maximum of $6 million, depending on performance.

Payment will be made partly by issuing 2.5 million Blue Chip shares.


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