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
- Budget 2017 at a glance
- No lolly scramble in the budget but sweeteners a-plenty
- Budget 2017: Election year budget spends future surpluses for families and infrastructure
- Budget 2017: What's been announced so far, what's tipped for today
- Budget 2017: Tax and benefits package targets low to middle income families
Most listened to
- NBR's Rob Hosking with budget analysis. No lolly scramble but sweeteners aplenty
- Grant Thornton tax partner Murray Brewer with his take on the tax package
- NBR’s Calida Smylie talks to CTU policy head Bill Rosenberg in the Budget 2017 lock up
- OMF Financial’s Nigel Brunel discusses the economic implications of the Budget
- MetroGlass CEO Nigel Rigby on the outlook and market share position
- David Seymour gives Gareth Morgan a serve as the latest political party donations are disclosed
- NBR Radio: best of the week ended May 19, with Grant Walker