THE Viento Group has recorded a loss after income tax of $1.82 million for the half year ending December 2007, compared to a loss of $335,000 in 2006.
Managing director Maurice Kluge said the result is to be expected given the groups strategic repositioning, undertaken with the approval of shareholders.
Meanwhile, the appointment of Kluge and the acquisition of his 50% interest in the two start-up funds management businesses form the foundation of the company’s key strategic objective to diversify into new funds management asset classes. As part of the agreement with Kluge, the xompany acquired his 50% interest in two start-up funds management businesses, Viento Global Property Pty Ltd and Viento Alternative Strategies Pty Ltd.
As part of this new strategic direction, the company is in the process of restructuring its business divisions into five key investment divisions, including Direct Property, Global Property Securities, Global Real Estate Private Equity, Global Alternative Strategies and Infrastructure.
In repositioning the business, the company incurred one-off costs of $1.2 million during the half-year. These included termination of the contract in relation to the former managing director.
Also during the half-year, the fund sold the John Street, Singleton Shopping Centre development property to the Macquarie Country Wide Trust, releasing the company from its obligation to firstly develop the shopping centre, secondly, guarantee any costs overruns in excess of the end valuation and lastly provide a two year rental guarantee.
The division’s focus in the second half of the financial year will be on efficiently managing the rollover of the majority of the remaining property syndicates into the Viento Diversified Property Fund.
Viento’s shares close unchanged at 40 cents as a result of no trade.
Australian Property Journal
