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- Release Date: 23/03/12 17:38
- Summary: ASSET: ZEL: Sale and leaseback completed ahead of auction
- Price Sensitive: No
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ZEL
23/03/2012 15:38
ASSET
REL: 1538 HRS Z Energy Limited
ASSET: ZEL: Sale and leaseback completed ahead of auction
Sale and leaseback completed ahead of auction
Seven of eight North Island Z/Shell-branded service stations offered for sale
and leaseback have been sold before the auction date to an Auckland-based
investor for $8.87 million at a 7.75 per cent yield.
The properties, located in Paihia, Auckland, New Plymouth, Marton, Palmerston
North, Havelock North and Wellington, generate net annual rental income of
$688,000. Most are on 12-year leases, with further rights of renewal. They
will become Z stations as part of the company's nationwide re-brand of the
Shell sites it purchased in 2010.
Z Energy's Assets Manager, Gail Calder, said the sale was a pleasing result
which would work well for both seller and buyer.
"Z Energy is committed to growth and to investing in New Zealand. This
approach represents an opportunity for us to direct capital into building new
sites, and into new investments, while keeping these existing service
stations operating in our network."
Gail said the sale and leaseback option was clearly an attractive opportunity
for investors in commercial property.
"This portfolio of sites offered an excellent opportunity for an investor to
acquire quality commercial assets which are occupied by a strong
locally-owned corporate tenant in high-profile locations."
"Z remains committed to the communities in which these sites are located, as
demonstrated by the 12-year leases on the majority of the properties," she
said.
Due to unforeseen confidential circumstances, the remaining auction property,
Z Strathmore in Wellington, has been temporarily withdrawn from the market.
Jason Seymour, John Green and Peter Herdson of Colliers International
brokered the sale on behalf of Z Energy.
End CA:00221110 For:ZEL Type:ASSET Time:2012-03-23 15:38:26
