Argosy sells under-performing Ellerslie property at just below book value
Argosy Property [NZX: ARG], the fourth-biggest listed property investor by market value, has sold an underperforming office building in Auckland's Ellerslie for $10.4 million.
The sale was at 92 percent of book value and is part of Argosy's plan to ditch underperforming assets, the company said in a statement.
"The property, which has suffered from a long term vacancy factor, has provided a disappointing total return of less than 5 percent and has been available for sale for some time," Argosy said.
"There was a requirement for significant capital expenditure on the building and this combined with the historical difficulties in maintaining an acceptable occupancy rate meant the total return was below acceptable levels."
Argosy shares rose 0.6 percent to 92 cents, and have edged up 1.7 percent this year, lagging the 13 percent gain on the NZX All Index, a capital measure of domestic equities, over the same period.