Argosy enters unconditional sale of Auckland property for $31 million
By Rebecca Howard
March 26 (BusinessDesk) - Argosy Property has entered into an unconditional sale of property in Auckland for $31 million, a price that presents a 13 percent premium over its latest book value, the company said in a release to the stock exchange.
According to Argosy, the Feb 28 book value of 7 and 7A Wagener Place, St Lukes, was $27.4 million. The settlement is expected to occur in July 2018.
“The market for commercial real estate remains attractive for long-term investors divesting real estate," said chief executive Peter Mence. "The sale presents an opportunity to reduce our retail exposure in an area where there will be increasing competition. It allows us to keep delivering on our strategy and we will reinvest the proceeds into other brownfield development opportunities across the portfolio."
Argosy has been diversifying its property portfolio outside Auckland, buying industrial sites which now make up 40 percent of its portfolio, according to the November half-year report.
Separately, it said it settled the sale of 14 Tunnel Grove, Wellington for $2.8 million.
The stock last traded at $1.00 and has shed 7.8 percent so far this year.