Argosy Property [NZX: ARG], the fourth-largest listed property investor on the NZX by market value, has sold its underperforming Mt Wellington property for $10.4 million.
The sale was a 2.7 percent premium to its March book value and is part of Argosy's plan to ditch underperforming assets, the company said in a statement. The Pacific Rise commercial property had an occupancy rate of about 75 percent according to Argosy's website, and has been bought by an owner-occupier.
"Returns from the property had suffered from long term vacancy issues and a short weighted average lease term," Argosy said.
Last December the company got rid of its underperforming Ellerslie holdings for $10.4 million, at 92 percent of its book value.
Shares in the company rose 0.5 percent to 95 cents. The stock has declined 8.5 percent over the past year underperforming the NZX 50 Index's 12 percent rise, while the property index, made up of 10 NZX-listed property stocks, has declined 1.1 percent in the past 12 months. The stock is rated an average of 'hold' based on five analysts surveyed by Reuters and has a median price target of $1.