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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Commerce Commission reveals the most complained-about companies
- Trump's debate meltdown: will it cost him?
- Where the polls stand on the eve of the first US presidential debate
- MARKET CLOSE: NZ shares drop, Orion Health and Xero lead index lower while Air NZ bounces
- Spark says 130,000 Xtra mail address at risk after Yahoo hack
Most listened to
- No knockout blows in first presidential debate, says NBR's Nevil Gibson
- Intueri's problems raise questions for the board, says Martin Watson of the Shareholders Association
- ANZ's Philip Borkin and NBR's Jason Walls on what's next for the kiwi dollar on Currency Talk
- AngelEquity's Bill Murphy on why his platform won't cater for retail investors
- Spark exec Jason Paris defends his company's honour after it tops ComCom's most-complained-about list
- FMA lawyer Justin Smith counters the Goldman Sachs defence