Commercial property investor Trinity Group says it expects to record a net loss of between $195 million and $220 million for 2008/09 due to devaluations in its investments.

Trinity posted a net profit of $34.5 million in 2007/08.

Chairman Keith De Lacy said the anticipated result reflected current market conditions.

“Trinity has experienced significant writedowns on assets and has also endured losses attributable to the recent disbanding of Trinity Development Group,” he said.

“In the first half of the year, Trinity suffered losses caused by goodwill impairment, development activities and hedging positions. In the second half Trinity is expected to have losses primarily attributable to asset write-downs.”

Trinity said the full year loss included a $46 million devaluation its property portfolio.

Equity accounted investments also would contribute a $54 million loss, while an impairment of $37 million would be recorded on intangibles in the Trinity Development Group.

Trinity Development Group, formerly Consolidated Properties Group, would incur a loss of $20 million, Trinity said.

A further impairment charge of $17 million would be realised on inventory, while a $6 million loss would be incurred on mark-to-market of Trinity’s financial assets.

Finally, Trinity forecast $9 million in non-recurring employment expenses, including termination payments.

Trinity is expected to release its annual results on August 27.

Meanwhile, the group said on Friday it had received a legal claim from an investor in the Trinity Development Trust and the Trinity Land Trust in respect of an alleged breach of the Trade Practices Act.

“Trinity will take the necessary steps to defend this action,” the group said.

AAP