PFI Buys Two Mt Wellington Properties For $9.8mill

Release to the New Zealand Stock Exchange

PFI Buys Two Mt Wellington Properties For $9.8million

Listed industrial property investor Property For Industry Limited has announced the purchase of two properties in Vestey Drive, Mt Wellington for $9.8million.

The properties are the Stocklink Distribution Centre at 7 Vestey Drive and the New Zealand Window Shades building at the corner of Vestey Drive and 2-6 Niall Burgess Road.

The average weighted lease term for the two properties is over 6.5 years. The combined rental income is $0.985million, representing a yield of 10.05%. Settlement is timed for 10 April.

“These properties are of the highest quality in terms of location, tenant covenant and construction,” said PFI General Manager Peter Alexander ”Following the purchase, 36.5% of PFI’s portfolio will be located in Mt Wellington.”

An important part of PFI’s investment strategy is a focus on premium, “land-constrained” locations close to arterial transport routes. This acquisition follows closely behind the acquisition by PFI late in December 2000 of eight nearby properties for $23.15million.

Mt Wellington is bisected by the southern motorway, is close to sea and air ports and is well serviced by rail. Within Mt Wellington the Westfield Estate, where the properties are located, provides a higher standard of amenity than many traditional industrial locations. As a result, many “blue-chip” tenants have chosen to locate in the area including Electrolux, PPG, Stocklink, New Zealand Window Shades, Adidas, Baxter Healthcare and Estee Lauder.

The acquisition takes PFI’s portfolio to 50 properties with a value over $217million.

PFI is New Zealand’s only publicly listed property company investing solely in the industrial sector. The company is managed by AMP Henderson Global Investors.
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