close
MENU
Hot Topic NBR Focus: GMO
Hot Topic NBR Focus: GMO
1 mins to read

Kiwi sells buildings, leans to Auckland and retail


Kiwi Income Property Trust has sold two more properties as it focuses on Auckland.

Chris Hutching
Tue, 02 Aug 2011

Listed Kiwi Income Property Trust has clinched a sale of its office building at 50 The Terrace, in Wellington for $6.37 million.

The chief executive of the manager of the trust, Chris Gudgeon, told NBR that the building was no longer a neat fit in the portfolio.

“We like Auckland, we like retail. Last year we bought Lynmall for $170 million. We’re about one third office and about two thirds retail currently.”

Mr Gudgeon said that talks are continuing with the insurers of the earthquake-damaged PricewaterhouseCoopers Centre in central Christchurch. All options are on the table including demolition, he said.

The 24-level PricewaterhouseCoopers Centre in Armagh Street was placed on the market before the earthquakes in 2010. It was expected to fetch around $50 million. But post-quake, the value of the PricewaterhouseCoopers Centre has reduced by $20.8 million (39.4%) to $32 million.

Meanwhile, the sale price of 50 The Terrace is in line with the book value of $6.3 million, based on the latest valuation as at 31 March 2011. Settlement is due on September 16.

Kiwi acquired the property for $4.1 million in 2005. It was built in 1988.

Another property owned by Kiwi on a rear site behind number 50 is also on the market. A marketing campaign with Colliers is underway to sell the 13-level office tower at 44 The Terrace.

The Trust also confirmed that it has also recently settled the sale of 1-17 Broadway Avenue, in Palmerston North for $2 million. 1-17 Broadway Avenue was acquired by the Trust in 1999 to facilitate the relocation of the Farmers department store to The Plaza Shopping Centre as part of the centre’s redevelopment. The sale price equates to current book value.

 “These assets are not core to our investment portfolio and are logical candidates for capital recycling given the opportunity,” Mr Gudgeon said.

Kiwi is developing a new $130 million office tower for ASB on the Auckland waterfront near Wynyard Quarter.

Chris Hutching
Tue, 02 Aug 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Kiwi sells buildings, leans to Auckland and retail
16158
false