Prime Trust gives insight into ILU sales and sets itself for rebuild

Prime Trust, which is not far off the size of Lend Lease Primelife, has confirmed our earlier report of a $91.2 million write down of its non cash assets for the six months to December (compared to $185 million for LLP). Prime points out that it sold 74 existing ILU’s in the July to December 08 period compared to 105 ILU sales in the January to June period – a 30% drop in DMF and capital gain income. They also completed 136 new ILU’s Queensland (Townsville, MacKay and Lindfield), but with just 46 being sold – or 34%.

The lower sales and revaluations have impacted on some of Prime’s debt facilities, causing the Board to consider the sale of their leased retirement and aged care facilities and a possible merger. Managing Director, Philip Powell, is upbeat. He emailed us “The story for us, is this is the start of the rebuild…need to sell some assets to get debt levels down, cut costs and outlays, realize the inventory of units and survive the downturn and position for the recovery”.