ING sells properties to pay debt
ING Property sells 5 properties, raising NZ$49 mln to repay debt
Dec. 11 - ING Property Trust agreed to sell five properties for NZ$49.4 million, freeing up funds to repay debt.
The property sales are due to settle before the trust’s March 31 balance date and bring total sales this year to nine, for a total of NZ$74.2 million this year, the trust’s manager said. The sale price amounts to 92% of their book values as at March.
“The Trust recently announced a reduction in its near-term debt target from 40% to 35%,” said Mike Smith, Chairman of ING Property Trust Management Limited, the manager of the Trust. “The sales announced to date are a demonstrable move towards achieving this goal.”
ING’s units traded unchanged at 65 cents and have advanced almost 7% in the past month, while the NZX 50 Index fell 3%. Smith said applying the sales proceeds to the Trust’s balance sheet would reduce the debt-to-total-assets ratio to 38% from 42%.