Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Property For Industry buys Wellington site for $15.3 million

Property For Industry buys Wellington site for $15.3 million

By Suze Metherell

July 8 (BusinessDesk) - Property For Industry, which increased its portfolio by two-thirds last year through a merger with Direct Property Fund, will spend $15.3 million on a Wellington property after selling $12.2 million worth of non-core properties in the first-half.

The Auckland-based property investor has entered into an unconditional agreement to buy the 14,995 square metre Hutt Park Road site which is currently being developed by Kea Property Group, the company said in a statement. Property For Industry has leased the Wellington site to EBOS subsidiary Masterpet Corp for 10 years at $1.16 million, or a 7.6 percent yield, for the investor, with rent reviews every three years. Settlement is expected mid-next month.

The company recently sold two Omega Street locations in Auckland for $2 million, bringing the total number of non-core assets sold to five with gross proceeds from the sales worth $12.2 million. Property For Industry has 80 industrial properties across the North Island and in Christchurch.

"The acquisition of 143 Hutt Park Road in Wellington combined with PFI's recent sales are examples of PFI's strategy of recycling capital from the sale of non-core property into core industrial opportunities," general manager Simon Woodhams said.

Shares in the listed industrial property landlord were unchanged at $1.335 and have gained 3.5 percent this year, underperforming the NZX 50 Index's 9.2 percent increase. It is the fifth-largest listed property company by market value and has an average recommendation of 'hold' according to five analysts surveyed by Reuters, with a median price target of $1.32.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news