PCT
21/06/2013 10:40
FORECAST
REL: 1040 HRS Precinct Properties New Zealand Limited
FORECAST: PCT: Reduced financing costs and positive valuation outcome
Precinct Properties New Zealand (NZX: PCT) today reported reduced financing
costs following signing of a new $660 million bank facility, and an expected
revaluation gain of approximately $40 million.
Reduced financing costs
Precinct has secured a new $660 million secured bank debt facility,
delivering material savings for the company due to lower margins and
replacing Precinct's existing $635 million unsecured facility.
The new facilities provide Precinct's lenders with the benefit of security by
way of mortgages over certain Precinct properties, which has enabled Precinct
to negotiate reduced margins. Covenants under the new facility are
substantially unchanged.
Funding is provided by the existing syndicate of ANZ, BNZ and CBA, with
Precinct also welcoming Bank of Tokyo-Mitsubishi UFJ to the syndicate.
The new facility has tranches expiring in July 2016, July 2017 and July 2018,
increasing the weighted average term to expiry from 3 to 4 years.
30 June 2013 Valuations
The valuations show an increase compared to forecast end of year book values,
across the portfolio of around $40 million (2012: $5.5 million) or 2.6%.
The valuations were carried out by independent valuers, are subject to final
audit and will be confirmed in the financial results for the year ended 30
June 2013, to be announced mid-August.
Auckland valuations, compared with forecast end of year book values increased
by around 5% while Wellington remained stable. The Auckland increases were
mainly attributable to increased positive sentiment due to an improving
investment market, asset specific leasing success and improving market rental
levels. Stable capitalisation rates, supported by recent sales evidence and
stable market rents, resulted in Wellington valuations being consistent with
forecast end of year book values.
Collectively, the revaluation, the redevelopment of ANZ Centre, the Downtown
Shopping Centre acquisition and the HSBC House acquisition increased the
value of Precincts portfolio to around $1.64 billion (2012: $1.33 billion).
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:00237676 For:PCT Type:FORECAST Time:2013-06-21 10:40:47
