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Office Tower Sale Opens Up Investment For Richina

SALE OF OFFICE TOWER OPENS UP INVESTMENT OPTIONS FOR RICHINA

Statement made by Dr Alastair MacCormick, Chairman, Richina Pacific Limited

Richina Pacific has sold the 25-level Mobil-on-the-Park retail, car parking and office tower in Wellington for $66 million to international investment company, Navire Holdings Limited.

The sale was approved at today’s special meeting of Richina Pacific shareholders in Auckland.

The company receives immediately a deposit of $6 million, with settlement date being 30 June 2003.

When the transaction is completed, Richina Pacific will record a profit on sale of $2.48 million. After meeting sale costs and repayment of the mortgage funding, a cash surplus of $26.5 million will be generated.

Ownership of Mobil-on-the-Park was never a core activity and we only became owners in 1996 when the original developer was unable to meet commitments to a Richina subsidiary.

It was in the company’s best long-term interests at that time to complete the building and then market it.

The recent renewed interest in the property market has created the environment in which the company realised a fair price for the complex.

The sale of Mobil-on-the-Park will allow for further strengthening of our balance sheet, and with the cash generated, will provide some support for our fast growth leather business.

At the meeting, the Chairman advised that, since reporting a surplus of $4.2 million for the half year to 30 June, progress had continued through July with an above budget performance. While August results are in preparation, they are looking to be on budget.

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