PCT
25/06/2015 15:35
GENERAL
PRICE SENSITIVE
REL: 1535 HRS Precinct Properties New Zealand Limited
GENERAL: PCT: $65m revaluation gain & sale of 171 Featherston Street
Precinct Properties New Zealand (NZX: PCT) today reported a revaluation gain
on its investment property portfolio of approximately $65 million (2014: $47
million) or 3.9%, increasing the value of Precincts portfolio to around $1.72
billion (Including 80 The Terrace and 171 Featherston Street).
Precinct has also announced today that it has entered into an agreement to
sell 171 Featherston Street in Wellington, conditional on Precinct Board
approval, for $76 million. The sale price is consistent with the 30 June 2015
independent valuation.
Scott Pritchard, Precinct's Chief Executive, said, "Over the past few months
we have made significant steps in advancing our long term strategy. The sale
of 171 Featherston Street brings the total proceeds from our asset sales
programme to around $210 million. Combined with the proceeds of the $174
million entitlement offer completed earlier this year, the company is in a
strong position to fund its development opportunities at Downtown Shopping
Centre and Wynyard in Auckland and Bowen Campus in Wellington over the coming
years".
Initially the proceeds from the sale will be used to repay bank debt and
reduce leverage. Following the sale and the FY15 revaluation gain, gearing
will reduce to around 14%. The sale is expected to settle in July 2015.
The valuations have been carried out by independent valuers, are subject to
final audit and will be confirmed in the financial results for the year ended
30 June 2015, expected to be announced 19 August.
Auckland valuations, compared with forecast end of year book values increased
by 8.3% and Wellington decreased by 2.1%. The Auckland increases were equally
attributable to compression in capitalisation rates and market rental growth.
The decline in Wellington values is a result of a slight reduction in market
rents while capitalisation rates have remained stable.
For further information, please 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]
End CA:00266168 For:PCT Type:GENERAL Time:2015-06-25 15:35:04
