Argosy sells Waitakere Mega Centre for $45.8m to reduce retail property exposure

Waitakere Mega Centre
Argosy Property 12-month price history (NZX.com)

Argosy Property [NZX: ARG] sold its Waitakere Mega Centre in Henderson, Auckland, for its $45.8 million book value as New Zealand's fourth-largest listed property investor seeks to reduce exposure to retail property.

The sale to an unidentified Christchurch-based investor will reduce Argosy's retail property weighting to within its targeted 15 to 25 percent band, from 28 percent at March 31, the Auckland-based company said. Industrial and office properties each accounted for 36 percent of assets at March 31.

The Waitakere property was designated non-core as part of property strategy reviews this year, the company said. In its 2014 annual report, Argosy had earmarked 10 percent of its $1.23 billion property portfolio for divestment.

Argosy will continue to manage the property until settlement in March. Coles Myer New Zealand Holdings is the property's major tenant and the centre had a weighted average lease term of 4.06 years and a passing yield of 8.47 percent at March 31.

Shares in Argosy slipped 0.5 percent to $1, crimping their gain so far this year to 9.8 percent.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6699 0.0006 0.09%
AUD 0.9324 0.0000 0.00%
EUR 0.6011 -0.0016 -0.27%
GBP 0.4585 0.0009 0.20%
HKD 5.2052 0.0067 0.13%
JPY 74.4410 0.2680 0.36%

Commods

Commodity Price Change Time
Gold Index 1212.7 -6.530 2016-05-27T00:
Oil Brent 50.0 0.550 2016-05-27T00:
Oil Nymex 49.3 -0.080 2016-05-27T00:
Silver Index 16.3 -0.070 2016-05-27T00:

Indices

Symbol Open High Last %
NZX 50 6992.6 7025.9 6992.6 0.39%
NASDAQ 4904.1 4933.5 4901.8 0.65%
DAX 10293.4 10333.1 10286.3 0.28%
DJI 17826.8 17873.2 17828.3 0.25%
FTSE 6265.6 6275.9 6265.6 0.08%
HKSE 20523.7 20765.6 20576.8 0.26%
NI225 16973.7 17068.0 16834.8 1.39%
ASX 5405.9 5415.0 5405.9 0.04%