PCT
24/11/2014 10:10
ASSET
REL: 1010 HRS Precinct Properties New Zealand Limited
ASSET: PCT: Precinct advances capital recycling strategy with SAP Tower
Precinct Properties New Zealand (NZX: PCT) announced today that it has
entered into an unconditional agreement to sell SAP Tower, located on
Auckland's Queen Street, to Robert Jones Holdings for $97 million.
Scott Pritchard, Precinct's Chief Executive, said, "This sale is a further
step in advancing our long term vision for the company. Over the past three
years we have secured active opportunities at Downtown Shopping Centre and
Wynyard Central in Auckland and Bowen Campus in Wellington that will improve
the quality of the portfolio. With these progressing well we have begun
divesting out of our non-core assets to help fund these opportunities."
The asset, constructed in 1988, formed part of Precinct's original portfolio
and was acquired in 1997. The sale is expected to settle in February 2015.
"The team have done a great job in positioning the asset for sale. In 2010
occupancy was 61% and it was valued at $66.8m; following a number of leasing
successes the asset is now fully let. In addition to this, the asset has
recently undergone significant capital improvement works."
Precinct previously announced that it was in negotiations with Quattro Asset
Management for the sale of 125 The Terrace in Wellington and SAP Tower in
Auckland. Those negotiations have now ceased.
The proceeds from the sale will initially be used to repay bank debt.
Following the sale gearing is expected to sit around 30%.
SAP Tower - Asset overview
The 17,800sqm building is a 29 level A-grade office tower with 760sqm floor
plates and is located on Queen Street in Auckland. Built in 1988 the
property includes 5 levels of basement carparking, an iconic Auckland health
club and 2 retail tenancies fronting Queen Street.
-ends-
For further information, contact:
Scott Pritchard
Chief Executive Officer
Office: +64 9 927 1640
Mobile: +64 21 431 581
Email: [email protected]
George Crawford
Chief Financial Officer
Office: +64 9 927 1641
Mobile: +64 21 384 014
Email: [email protected]
About Precinct (PCT)
Precinct is New Zealand's only specialist listed investor in prime and
A-grade commercial office property. Listed on the New Zealand Exchange, PCT
currently owns 17 New Zealand buildings - Auckland's PricewaterhouseCoopers
Tower, ANZ Centre, SAP Tower, AMP Centre, Zurich House, HSBC House and
Downtown Shopping Centre; and Wellington's State Insurance Tower, Vodafone on
the Quay, 171 Featherston Street, 125 The Terrace, No. 1 and 3 The Terrace,
Pastoral House, Mayfair House, 80 The Terrace, Deloitte House and Bowen
Campus.
End CA:00258002 For:PCT Type:ASSET Time:2014-11-24 10:10:25
