ARG
30/11/2015 15:12
ASSET
NOT PRICE SENSITIVE
REL: 1512 HRS Argosy Property Limited
ASSET: ARG: Argosy to acquire Prime Industrial Building & Land in Wiri
Argosy Property Limited is pleased to announce the agreement to acquire two
properties adjacent to Argosy's current industrial facility at 19 Nesdale
Avenue, Wiri.
The first, at 240 Puhinui Road, Wiri, entails the purchase on completion of a
new design/build facility from one of Argosy's existing valued tenants,
Cardinal Logistics ("Cardinal"). Cardinal is a 100% New Zealand owned and
operated business who specialise in providing distribution and storage
solutions, with a strong focus on grocery products and other fast moving
consumer goods. Cardinal have been in operation since 1992.
The property, whose design and specifications will be identical to the very
high, modern standard of the existing facility also built by Cardinal, is to
be acquired for $22.6 million. A new 15 year lease will be in place from the
settlement date which is expected in December 2016. Rent reviews are three
yearly to market or a percentage increase of 4.5%, whichever is greater. The
initial net effective passing yield on cost is 6.94%.
In addition to this acquisition, the warehouse facility at 19 Nesdale Avenue,
also leased to Cardinal, will have its term extended by three years so both
properties will have matching 15 year leases in place.
A separate unconditional agreement has also been reached to acquire an
adjacent piece of expansion land at 246 Puhinui Road for $2.85 million, with
settlement expected to be in December 2015. This 0.72 hectares of land
enables Argosy to control the dual road accessway, as well as providing
expansion land for future development.
The properties are located approximately 3 kilometres west of the Manukau CBD
and have good access to the South Western Motorway, allowing direct
connection to Auckland International Airport, which is less than 7 kilometres
away.
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 cost of the two acquisitions will be covered by proposed non Core
divestments.
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:00274366 For:ARG Type:ASSET Time:2015-11-30 15:12:17
