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BNZ Final Tranche Of Sale-And-Leaseback Properties

Bank Of New Zealand Launches Final Tranche Of Sale-And-Leaseback Properties

The Bank of New Zealand has released the final tranche of its branches to be marketed to investors on a sale-and-leaseback basis.

Corporate property services company Colliers Jardine, which sold 45 BNZ branches in 1996 and another 18 earlier this year, has been appointed to sell a further 11 North Island branches at auction. Four other branches - two in the North Island and two in the South - are available through Colliers Jardine by deadline private treaty.

Bank of New Zealand head of corporate real estate, Mr David Browne, said the branches will be sold with six-year leases to the Bank and three rights of renewal, each of three years. Price expectations start about $200,000.

Branches are Kaikohe, Kerikeri, Dargaville, Milford, Henderson, Glen Eden, Avondale, Frankton, Whakatane, Gisborne and Paraparaumu are for sale by auction. Branches at New Plymouth, Hastings, New Brighton and Timaru are for sale by deadline private treaty.

There will be no change to the operations of the branches - the Bank simply becomes the building's tenant rather than the owner.

"Owning property is not a core function of the Bank and, by freeing up these funds through the sale-and-leaseback programme, we are able to concentrate even more on looking after the needs of our customers," said Mr Browne.

He added that the 100 percent sale record in the programme to date demonstrated that the Bank was a willing vendor.

Colliers Jardine director Mr Michael Judd said there was proven market acceptance of the six-year lease term, and a number of the branches were in growth areas.

"The buyers are typically local investors who have confidence in the future of their own area. We are anticipating a good turnout for this final round of sales."

Mr Judd said previous Bank of New Zealand auctions had attracted up to 100 bidders, and while bidding had been competitive, it had taken place in a fun and friendly atmosphere. "At the Auckland auction in March, one investor brought two branches to add to the one he already owned."

He said yields on previous branch sales had ranged from about eight to about 14 percent, with the average about 11 percent. Colliers Jardine auctioneer Mr Michael Williams will run the auction, which starts at 11am on Friday October 15 at the Hyatt Regency in Auckland.

The deadline private treaty for the New Plymouth, Hastings, New Brighten and Timaru branches closes the following Friday, October 22.

ENDS....

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