Stride Property to reap $31.8m from Penrose propert if it can ensure leases
The price is conditional on Stride ensuring replacement or additional leases are found in the event any tenants exercise early termination rights.
Stride Property [NZX: STR] has conditionally agreed to sell its office building at 650 Great South Rd, Penrose for $31.8 million, or 7.8% above book value.
The price is conditional on Stride ensuring replacement or additional leases are found in the event any tenants exercise early termination rights, or where short-term leases expire, the Auckland-based company formerly known as DNZ Property Fund said in a statement. If all the costs related to those commitments were incurred, the net sale proceeds would be about $28.9 million.
Chief executive Peter Alexander said the sale was "part of Stride's strategy to divest non-core assets to fund new development and acquisition."
The sale would go unconditional on June 3, with settlement expected on June 15, the company said.
Stride shares last traded at $2.26 and have gained 17% in the past 12 months, almost matching the NZX 50 Index's gain.
(BusinessDesk)
Jonathan Underhill
Tue, 19 Apr 2016
Tue, 19 Apr 2016
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Stride Property to reap $31.8m from Penrose propert if it can ensure leases
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