Investore sells Christchurch supermarket to fund Bunnings purchase
By Sophie Boot
March 2 (BusinessDesk) - Investore Property has sold its Countdown supermarket in Hornby, Christchurch for $21.5 million to help fund its recent acquisition of three Bunnings stores.
Settlement is due on March 23, and the deal represents an initial yield of 6.26 percent and a 10.8 percent premium to the value of the property as at Sept. 30, the company said.
Investore said the sale was part of the divestment programme announced last year, so it could buy three Bunnings retail sites from manager Stride Property Group for $78.5 million. That proposal was backed by 99.9 percent of shareholders at a special meeting last month, and the transaction settled on Feb. 28. The company also sold its Fresh Choice supermarket in Queenstown for $11.1 million in January.
The shares last traded at $1.37, from $1.36 this time a year ago.