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HP Investors Back Highland Park’s Future


21 August 2012

HP Investors Back Highland Park’s Future

Investors in SPI Capital’s HP Syndicate have provided overwhelming support to continue with leasing and development options for the syndicate’s Highland Park property at Pakuranga, Auckland.

At a meeting to determine the future of Highland Park, held last night at the Barrys Court Hotel in Parnell, investors were presented with three options for the property:

1. Turning the property into a shopping Centre

2. Adding to it in a variety of ways

3. Selling the property.

Murray Alcock, Director of SPI Capital, says that investors voted for SPI Capital to continue with leasing and development options for the property, partly as a result of the favourable response so far provided by prospective tenants.

“The property has been producing a strong cash return of 11.9% on funds invested. This has enabled HP to reduce bank debt considerably over the last 2 years.

“We called the meeting to ensure that investors were fully informed about their options. As we have communicated previously, the current lease to Event Cinemas is up next year. We have been active in repositioning the property for the future and wished to share progress with our Investors.”

“We have been talking to existing and potential tenants regarding the amount of space they wish to occupy in future, and exploring design options with architects, designers and agents to accommodate those needs. There is good tenant interest and we are currently signing strong companies on Heads of Agreement to lease space in the centre.

“When we combine this with the investors’ response last night, we can approach the future for this property with confidence. We have undertaken to report back to Investors on our progress and present options in mid-October.” Syndicate / property details:

Address: Highland Park, Pakuranga

Tenure: freehold

Current valuation: $5 million

Bank borrowing: $2.570 million

LVR: 51.4%

Interest rate: 6.4%

Commencement date: 3 October 2005

Units issued: 91

Current Return on Cash Invested: 11.9% Current Tenant details:

EVENT Cinemas (Amalgamated Holdings Ltd, trading as EVENT Cinemas)

Lease term: 15 years

Rights of renewal: 15 years (15 March 2013)

Rent reviews: Annual CPI and market review every five years


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