Ann: GENERAL: PFI: PFI Acquisitions and Sales

• Release Date: 22/11/12 10:30
• Summary: GENERAL: PFI: PFI Acquisitions and Sales
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PFI
22/11/2012 08:30
GENERAL

REL: 0830 HRS Property for Industry Limited

GENERAL: PFI: PFI Acquisitions and Sales

PFI ACQUISITIONS AND SALES

NZX listed industrial property landlord Property For Industry (PFI) has today
announced that it has entered into unconditional contracts to acquire three
industrial properties with a total purchase price  of $37.776 million at an
average purchase yield of 8.7%.

With a weighted average lease term in excess of 9.8 years, the acquisitions
will further strengthen PFI's lease expiry profile and all leases benefit
from inherent rental growth.

PFI has also entered into unconditional contracts to sell two properties in
Auckland's North Harbour district for a total sales price1 of $3.950 million.

Acquisitions
8A & 8B Canada Crescent, Hornby, Christchurch comprises two cold store
facilities with a gross lettable area of 9,185 sqm on a 11,689 sqm site. On
settlement of the acquisition, being 29 November 2012, a new lease to
Polarcold Stores Limited will commence for a 15 year term. This lease is
guaranteed by the tenant's parent company, Scales Corporation Limited.

The initial rental on the property is $1.080 million and PFI has contracted
to purchase the property for $11.250 million, equating to a yield of 9.6%.

178 Swanson Road, Swanson, Auckland comprises a 4.469 hectare site leased to
Transportation Auckland Corporation Limited. A wholly owned subsidiary of NZX
listed Infratil Limited, the property is utilised as a bus depot and
servicing centre.

The rental on the property is $0.924 million and PFI has contracted to
purchase the property for $11.926 million, equating to a yield of 7.8%.
Settlement is due to occur on 5 December 2012.

30 - 32 Bowden Road, Mount Wellington, Auckland comprises warehouses and
associated offices and amenities with a gross lettable area of 18,497 sqm on
a 4.254 hectare site. Leased to Fletcher Building Products Limited, a wholly
owned subsidiary of NZX listed Fletcher Building Limited, the property is
utilised for the manufacture and distribution of aluminium extrusion
products.

The rental on the property is $1.270 million and PFI has contracted to
purchase the property for $14.600 million, equating to a yield of 8.7%.
Settlement is expected to occur in early 2013.

Sales
PFI has also entered into unconditional contracts to sell 19A and 29 Omega
Street, North Harbour, Auckland. The combined sales price of $3.950 million
is in excess of the December 2011 valuation. Both properties are being sold
with vacant possession.
Closing
Following these acquisitions and sales, PFI's gearing  will rise to
approximately 34%, within the board policy of 35% .

Nick Cobham, General Manager for PFI, said: "These acquisitions and sales are
in line with PFI's strategy of focusing on cash returns to shareholders
through recycling capital from the sale of non-core property and deploying a
prudent level of debt capacity into accretive core industrial opportunities."

Contact
For further information please contact:
Nick Cobham
General Manager
DDI: +64 9 303 9656
Mob: +64 21 464 583
Email: [email protected]

About PFI
PFI is New Zealand's only listed company specialising in industrial property.
PFI's portfolio of 50 industrial properties in Auckland, Wellington and
Christchurch, is leased to 86 tenants.

www.pfi.co.nz

1. Excluding acquisition or sales costs.
2. Ratio of external bank borrowings to investment property values.
3. Bank covenants of 45%.
End CA:00230075 For:PFI    Type:GENERAL    Time:2012-11-22 08:30:17