Kiwi Property to sell Wellington's Majestic Centre for $123.2m to Investec

The Majestic Centre in Wellington
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Kiwi Property Group, which manages a $3 billion portfolio of shopping centres and office buildings, is selling its Majestic Centre office tower in Wellington to Investec Australia Property Fund for $123.2 million.

Auckland-based Kiwi Property has invested in earthquake strengthening the tower, in what it says was one of New Zealand's largest seismic upgrade projects, and will use the funds from the sale to pay down bank debt, giving it further flexibility as part of its strategy to fund new developments including expansion of its Sylvia Park, New Lynn and Westgate sites in Auckland.

The purchase is the first in New Zealand for Investec, which is listed on the Johannesburg Stock Exchange with the aim of providing South African investors with direct access to the Australian commercial property market and is in line with its strategy of investing in well-located, high-quality assets. It takes the Fund's total portfolio value to about A$910 million.

Kiwi Property said the sale is due to settle next month and it will manage the Majestic Centre for Investec.

Shares in Kiwi Property last traded at $1.32 and have dropped 5.7 percent the past year.


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5 Comments & Questions

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NPT missed out on that one. I wasn't too fussed about it at the time. But the North City Plaza looks like an opportunity missed. Whenever I visit the place, it's packed. The foodcourt is always full of people spending up big time. Like I said, an opportunity missed. Still I suppose the board of directors know best.

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Ivan, suggest you talk to all retailers there for a full picture

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All retailers moan about the rent that they have to pay. I don't see any moving out though, or any empty shop spaces for that matter. I must say that it can be a bit of a pain trying to get a car park there. It's always so full. Full of spending shoppers.

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Do you even live in Wgton?

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Good for Kiwi to get this off their books: capital recycling, more retail focus, and has been a drag, looks like about $90m of seismic capex spent on this for a property starting off at about $60m value.

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