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- Release Date: 05/06/13 17:49
- Summary: ASSET: ARG: Acquisition of Progressive Enterprises Distribution Centre
- Price Sensitive: No
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ARG
05/06/2013 15:49
ASSET
REL: 1549 HRS Argosy Property Limited
ASSET: ARG: Acquisition of Progressive Enterprises Distribution Centre
Argosy Property Limited is pleased to announce the unconditional agreement to
acquire the main Auckland distribution warehouse for Progressive Enterprises
at Favona Rd, Mangere. The property is to be acquired for $74 million,
reflecting a passing yield of 8.2%. Progressive Enterprises have been in
occupation of the building since 1979 and the lease has a further 11 years to
run.
The property is well located with excellent access to the Auckland motorway
system, which will be further improved upon completion of the Waterview
Interchange connecting to the Auckland North Western Motorway.
This off-market acquisition is consistent with Argosy's strategy, and
increases the weighting to Auckland industrial property. The property will
form part of the Core portfolio.
The acquisition (after also allowing for the settlement of the Wellington
Stout St property) will take Argosy's debt-to-asset ratio to 40.1%, which is
marginally above the medium term gearing target of 35-40%, but well below our
50% debt covenant. The Board remains committed to having its debt-to-asset
ratio in the target range in the short to medium term.
End CA:00237072 For:ARG Type:ASSET Time:2013-06-05 15:49:25
