Press Release – Kiwi Income Property Trust
Kiwi Income Properties Limited, as Manager of Kiwi Income Property Trust, announces that it has entered into a sale and purchase agreement to sell its office complex at 205 Queen Street, Auckland to Auckland City Holdings Limited, a company associated …NZX RELEASE
23 October 2013
Sale of 205 Queen Street, Auckland
Kiwi Income Properties Limited, as Manager of Kiwi Income Property Trust, announces that it has entered into a sale and purchase agreement to sell its office complex at 205 Queen Street, Auckland to Auckland City Holdings Limited, a company associated with Brisbane-based Bloomberg Incorporation Limited, in a transaction that was brokered by CBRE Limited.
The agreement remains conditional on Overseas Investment Office and ground lessor approvals.
Following satisfaction of the outstanding conditions, the sale is to be executed in two tranches of 50% each. The first tranche will be sold for $47.5 million, which compares with the building’s 31 March 2013 valuation of $48.3 million (50% interest equivalent), with settlement expected to occur by January 2014. The remaining tranche is to be sold at the prevailing market value in either March or September of each succeeding year, at the option of the purchaser, with an absolute obligation to purchase by no later than 31 March 2017.
Chris Gudgeon, Chief Executive of the Manager, said: “This sale is consistent with our strategy of recycling capital out of mature assets to maintain balance sheet flexibility.”
As part of the sale agreement, Kiwi Property Management Limited will retain its role as property manager.
“Our management team has been actively leasing space within the building, and in the financial year to date 14 new leases have been executed over a total of 4,300 sqm, including a new 12-year lease to law firm Brookfields over two full floors or 1,169 sqm. The building currently has a 79% occupancy rate.” About 205 Queen Street, Auckland
205 QUEEN (formerly National Bank Centre) is well located on an entire block, at one of Auckland’s busiest pedestrian intersections. The A-grade property was completed in 1990 and purchased by the Trust in three tranches between November 1996 and November 2006. It comprises twin towers of 17 levels and 22 levels with podium retail and basement carparking for 131 cars.