Strategic turns in strong half-year

Specialist property funder Strategic Finance's half-year profit increase is partly the result of a $20 million growth in total assets to reach $338 million.

Strategic, expected to eventually list on the NZX, made an unaudited after-tax profit of $11 million for the six months to December, up from $10.1 million for the same period the year before.

Strategic's assets were $188 million in June 2002, but grew to $234 million by 2003.

Chief executive Jock Hobbs said revenue was up in the latest period from $30 million to $34 million.

Shareholder funds grew from $46 million to $53 million, liquid funds stood at $40 million and total liabilities were $285 million.

Strategic Finance is the umbrella group offering fixed interest investments and lending packages, primarily for property transactions.

But these divisions are included under its name:

* Strategic Nominees, which specialises in negotiating debt facilities, raising mezzanine and equity finance and establishing underwriting facilities.

* SFL Properties, which owns properties.

* nStrategic Advisory, which deals with mergers, acquisitions and divestments, management consultancy services and capital raising projects.

* Strategic Mortgage Broking, which lends to residential property buyers, investors and developers.

In December, Strategic said it had maintained its B1 credit grading from international corporate ratings agency Rapid Ratings for the third consecutive year.