TTP eyes Hong Kong as profit takes $10m hit

Trans Tasman Properties yesterday reported a drop in net profit for the year to December, to $30.7 million from $40.6 million the previous year.

Operating revenue for the year fell to $79 million, from $81.1 million.

The board said it thought the Australian and New Zealand investment property markets were approaching peaks in their property cycles and opportunities in those markets were limited.

TTP sold 11 investment properties in New Zealand over the year, for a total of $261 million. It bought a shop and three development sites in Hong Kong.

The board said the Hong Kong market was recovering from its cyclical lows, and offered better prospects than the Australian or New Zealand markets at this time.

The company shifted its head office to Singapore in January this year, reflecting its shift in investment focus from Australasia to the wider Asia Pacific region.

About 45 per cent of its assets are in New Zealand, another 45 per cent are in Hong Kong, and the remaining 10 per cent are in Australia.

Shares in TTP closed down 1c at 36c. They have traded between 34c and 50c over the past 12 months.

- NZPA