ARG
10/02/2015 09:37
ASSET
PRICE SENSITIVE
REL: 0937 HRS Argosy Property Limited
ASSET: ARG: Argosy Portfolio Acquisition & Bank Facility Restructure
Wellington Industrial Property Acquisition
Argosy Property Limited (Argosy) is pleased to announce the unconditional
agreement to acquire a portfolio of five industrial properties in the
Wellington region for a total of $59 million.
The portfolio comprises four industrial properties located in the
Seaview/Gracefield precinct of Lower Hutt, and one industrial property in the
industrial precinct of Grenada North.
The portfolio provides a combined lettable area of approximately 42,600 sqm
and the properties have a weighted average lease term of 5.19 years. The
overall WALT of the portfolio will be 5.42 years following the acquisition.
Settlement is expected to occur this month.
Property Market Value Initial Yield WALT (by rental) Major tenant
14 Tunnel Grove, Gracefield $ 2,640,000 8.24% 5.89 Wesfarmers Industrial &
Safety NZ
147 Gracefield Road, Gracefield $ 11,700,000 8.23% 2.08 Linfox Logistics (NZ)
19 Barnes Street, Seaview $ 10,930,000 7.72% 8.75 New Zealand Van Lines
39-49 Randwick Road, Moera $ 17,070,000 8.68% 3.77 Debonaire Furniture
56/68 Jamaica Dr, Grenada North $ 16,600,000 7.90% 6.66 Recall NZ
Totals $ 58,940,000 8.18% 5.19
The acquisition improves geographic diversification by gaining an exposure to
the Wellington industrial market. Portfolio sector allocations remain in
line with the levels targeted in the strategic plan.
The acquisition will be fully funded by the drawdown of debt from Argosy's
syndicated bank facility.
The Company's debt to total asset ratio at 31 March 2015, following the
acquisition and the previously announced disposal of the Waitakere Mega
Centre in Henderson, is expected to be approximately 38%.
Bank Facility
Argosy is also pleased to announce that it has restructured its syndicated
bank facility with ANZ Bank New Zealand Limited, Bank of New Zealand and the
Hongkong and Shanghai Banking Corporation on improved terms.
Tranche A has been increased from $250 million to $275 million and now
expires on 30 November 2017. Tranche B has also been increased from $250
million to $275 million and now expires on 30 November 2019.
As part of the restructure Argosy will receive immediate margin and line fee
reductions and achieve overall annual savings of $0.2m (after including all
upfront costs and line fees on the additional facility).
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Press enquiries
Peter Mence
Chief Executive Officer
Argosy Property Limited
Telephone: 09 304 3411
Email: [email protected]
Dave Fraser
Chief Financial Officer
Argosy Property Limited
Telephone: 09 304 3469
Email: [email protected]
Scott Lunny
Investor Relations Manager
Argosy Property Limited
Telephone: 09 304 3426
Email: [email protected]
End CA:00260437 For:ARG Type:ASSET Time:2015-02-10 09:37:54
