Pumpkin Patch Receivership
4 November 2016
On 26 October 2016, the Board of Pumpkin Patch Limited (“PPL”) placed the company into Voluntary Administration. On the same day ANZ Bank appointed KordaMentha as Receivers. The child clothing retailer had been struggling with poor retail performance and a high level of debt.
Trust Management engaged with the Receivers on 27 October 2016 and there has been regular dialogue since this date between the parties in relation to PPL’s leases at 433 & 439 East Tamaki Road, Auckland (the two properties are 50% owned by the Trust Investments - Property Fund).
The office building at 433 East Tamaki Road was not being utilised PPL. The property associated with the 439 East Tamaki Road lease is Pumpkin Patch’s warehouse distribution centre. The offices at this property is currently being utilised as Pumpkin Patch’s head office.
Pumpkin Patch has paid all rental and operating expenses through to 31 October 2016. At the time of Receivership PPL had no outstanding monies owed to the Property Fund.
The properties leased to Pumpkin Patch represent 12% of the total assets of the Property Fund, 15% of the Fund’s property portfolio by value and approximately 21% of the rental income of the Fund. We note the properties are 50/50 owned with St John College Trust Board.
Prior to PPL entering into Administration and Receivership, Trust Management had been negotiating with Maori Television Service (“MTS”) to lease 433 East Tamaki Road.
MTS has entered into an Agreement to Lease which is conditional upon a surrender agreement being concluded with PPL with respect to 433 East Tamaki Road. We are currently in discussions with respect to this surrender agreement with PPL’s Receivers.
If the letting with MTS is achieved it will reduce the Property Fund’s exposure to PPL to 7% of the total assets of the Property Fund, 9% of the Fund’s property portfolio by value and approximately 11% of the rental income of the Fund.
Trust Management is closely monitoring the situation and is working closely with the Receiver.
In the interim if you wish to discuss the situation further please contact Patrick O'Reilly 09 550 4056 or Grant Hope 09 550 4044.
Under the Financial Markets Conduct Act this communication may be deemed to be an advertisement for an offer of units. Trust Investments Management Limited is the issuer of the units to be issued under the offer to which this advertisement relates. A product disclosure statement for the offer, which sets out the terms and conditions of the offer, is available, and can be obtained at www.trustmanagement.co.nz/investment-products.