Argosy's Wellington buy-up over-subscribed

Argosy Property is just days away from going unconditional on part of its Wellington cbd buy-up plan, after a successful share offering.

The Auckland-based company had been aiming to raise an extra $20 million from its share purchase plan in order to go unconditional on two Wellington properties – the former Defence House and New Zealand Post House.

Its share purchase plan was extended by a week to take into consideration some investors possibly still on holiday. It closed over-subscribed on Tuesday, with a total of $31.4 million invested.

Argosy chief executive Peter Mence says the board has decided to scale back applications on a proportionate basis based on the dollar amount for which share applications have been made.

Shares will be allotted next week and any refunds will be mailed back to investors.

It managed to raise $80 million from institutional investors just before Christmas, at a price of 0.88 cents per share.

The total investment now means Argosy can go unconditional at the end of this month on the former defence headquarters in Stout St and can go unconditional on New Zealand Post House in Waterloo Quay a month later.

Argosy paid $33 million for 15 Stout Stand $60 million for New Zealand Post House.            

Mr Mence told NBR ONLINE he expects to settle on both properties shortly after going unconditional.

The price of the shares issued under the plan has also been set at 0.88 cents per share.

Argosy started the day’s trading unchanged at 95 cents.

bcunningham@nbr.co.nz

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