13 November 2018
MARKET RELEASE
Market update - Further non Core divestments and a strategic acquisition
Argosy Property Limited (Argosy) has announced the sale of two non-Core regional assets, 1478 Omahu Road in Hastings and 31 El Prado Drive in Palmerston North. 1478 Omahu Road has been sold for $10.2 million which represents a 12% premium over book value. Settlement will take place in March 2019.
The property at 31 El Prado drive has been sold for $35.5 million, which represents a 25% premium over book value. Settlement will take place in December 2018.
The divestment of these regional assets means that Argosy has only 3 properties outside its core Auckland and Wellington markets.
In September Argosy acquired a freehold 15,838 square metre industrial yard in September in Roscommon Road, Wiri for $8.6 million. The site is currently leased to NZX listed Turners Automotive Group (TRA.NZ) on a 15-year lease, providing a holding return of 5% with fixed reviews of 2.5% per annum, with a market review in year 6.
Argosy Chief Executive Officer Peter Mence said "We are pleased to have commenced what we envisage to be a mutually beneficial long-term relationship with an organisation that has a significant real estate footprint across New Zealand."
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Enquiries Peter MenceDave Fraser
Chief Executive Officer Argosy Property Limited Telephone: 09 304 3411 Email:pmence@argosy.co.nz
Chief Financial Officer Argosy Property Limited Telephone: 09 304 3469 Email:dfraser@argosy.co.nzStephen Freundlich Head of Investor Relations Argosy Property Limited Telephone: 09 304 3426
Email:sfreundlich@argosy.co.nz