Argosy sells vacant Albany site at 7% discount to valuation
BUSINESSDESK: Argosy Property, whose shareholders agreed to corporatise the company after buying out the ANZ Bank-owned manager last year, has sold an empty building in Auckland's Albany suburb for a 7% discount.
The Auckland-based property investor sold a vacant property on the North Shore after tenant Dick Smith Electronics relocated to Manukau last year, it said.
The price represents 93% of the $6.9 million book value, indicating it sold at $6.4 million. The sale will settle on June 8.
"The current North Shore industrial market generally demands a much lower office to warehouse ratio than the Bush Rd property," the company said.
"This, combined with the current maximisation of buildings on the site, constrains the future potential of the property for Argosy."
Last week, Argosy said it wanted to sell underperforming assets and vacant land to further reduce its $382 million of bank debt. The property investor flagged flat distributable earnings of $33.4 million in the year ended March 31, and expects a similar result in 2013.
The unnamed purchaser is a locally-based owner-occupier, it said.
Argosy's shares rose 0.6% to 85 cents in trading yesterday, and have gained 7% this year.
The stock is rated a "hold" based on the average consensus of five analysts compiled by Reuters, with a median target price of 86 cents.