Archive | Gainz

Updated: Reserve Bank sublets to help pay the rent

Published 4 September 2017, updated 6 September 2017:
The Reserve Bank has gone further into commercial sub-leasing – not because it saw how to use space better, but to meet its schedule of payments to the Government. The NZ Defence Force has signed a lease to occupy 3 floors in the Reserve Bank building in Wellington, beginning sometime in the next 4 months (the bank said ‘later this year’).

Update paragraph: The bank told me yesterday it owned the building and wasn’t subletting. In my shorthand I called it subletting because the bank is leasing out space so it can pay its owner, the Government, not because it didn’t need the space. Strictly, it’s a lease. In effect, the bank’s not an owner in control.

The bank’s head of currency, property & security, Steve Gordon, said today the Defence Force would be the fourth tenant in the building, joining the Parliamentary Counsel Office, Parliamentary Commissioner for the Environment and the State Services Commission.

He said the bank had vacated the floors being leased to the Defence Force as part of a strategy to increase its property income to meet its funding agreement.

The bank has been leasing space in the building, at No 2 The Terrace, since at least mid-2016.

Mr Gordon said the appeal of the building lay in its top seismic rating & proximity to Parliament. The building is being refurbished to modernise its interior.

Attribution: Bank release.

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Precinct sets notes interest rate

Precinct Properties NZ Ltd allocated $125 million of 4-year convertible notes today at 4.8%/year, the minimum interest rate under the offer. It has another $25 million of notes available under its priority offer.

Today’s allocation included the maximum $25 million of oversubscriptions.

Minimum application amounts are $5000 under the general offer, which closes on Friday 22 September, and $1000 under the priority offer, to eligible NZ-resident Precinct retail shareholders, closing on Tuesday 19 September.

Today’s bookbuild setting the interest rate was for participants in the general offer.

Link: Precinct notes product disclosure statement

Earlier story:
27 August 2017: Precinct launches 4-year convertible notes

Attribution: Company release.

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Metlifecare’s Botany site price disclosed

Metlifecare Ltd’s Botany site, bought through Bayleys 4 months ago for a retirement village, cost it $21 million.

Metlifecare bought the near-level, north-facing site, formerly part of the Pakuranga golfcourse, to build a $140 million retirement village. Its plan is for about 160 independent living units & serviced apartments plus care facilities.

South

Botany Downs

197 Botany Rd:
Features: 2.38ha site zoned mixed housing suburban
Outcome: sold for $21 million, at $882/m², to NZX-listed Metlifcare Ltd
Agent: Dave Stanley

Attribution: Agency release.

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Augusta shareholders get insight into workings of a fast-moving asset manager in an oft-pedestrian sector

Augusta Capital Ltd’s annual meeting last Thursday was an opportunity for investors to gain an insight into a changing world.

The company’s annual results, out in May, showed an entity determined to shift completely out of long-term passive direct investment and into a range of portfolio management roles. It now has a $1.7 billion portfolio of syndicates & other funds under its wing, including privately held portfolios and the Value-Add Fund No 1, which is not about the traditional yield-based returns on property but about repositioning assets and making a profit.

Mark Francis.

Managing director Mark Francis said the company had limited opportunities for growth in its remaining direct property portfolio without substantial new capital being introduced, and market conditions favoured diversifying.

He listed these alternatives, which he saw offering much better returns:

  • Realising further opportunities to manage funds
  • Launching additional funds with the potential to expand & diversify these types of offerings into niche & strongly performing sectors of the economy
  • Ongoing, measured expansion into Australia
  • Maintaining prudent capital management structures throughout
  • Balance sheet transformation
  • Working closely with Bayleys Real Estate to maintain optimal efficiency across the existing asset portfolio, and
  • Active management.

Here & there he would throw in a corporate catchphrase, realise it and revert to blunter language. Augusta is about making properties work – and if they don’t work, can’t be improved further, don’t offer redevelopment opportunities, are syndicates at the end of their time, the company will move on.

While the company’s refashioning ownership away from long-term passive, it’s also been adjusting its balance sheet to cater for different ownership forms (syndicates closing earlier than they used to, funds with other imperatives, development) and for volatile cash holdings.

The issue of volatility was sorted out at the annual meeting when the constitution was changed with a 99.74% vote in favour of removing the loan:value ratio clause that had impeded some investments.

Recurring fees are the cement

Augusta chair Paul Duffy said the focus of the last year, growing recurring management fee income, remained the focus and would be driven through new syndicates & a range of multi-asset property funds. The company would also invest in new staff, technology & processes to further that aim.

“Recurring annualised base management fees increased 10% in the last financial year. This trend has continued in the new financial year with the completion of the 33 Broadway Offer at the end of June and our latest Australian syndication, which will settle this coming Monday.

“In the last financial year, we raised over $200 million in equity for the establishment of new syndications. This included the 2 largest-ever syndications completed by Augusta – the NZME & BDO buildings at Graham St, Auckland. Outside of the KiwiSaver sector, there are very few entities across the financial sector which will have raised similar amounts of equity.

“The success of those capital raisings has seen the number of investors in our syndicates & funds grow 20% in the past year. Augusta now has over 3000 investors in its syndicates and 880 shareholders in Augusta Capital.”

The sale of remaining Finance Centre properties will be completed in 2018 & 2019, and Augusta will use the released funds to warehouse property before syndication, underwriting & co-investments in new funds. However, Mr Duffy said it was proving harder to source these opportunities.

The earnings

Augusta increased adjusted funds from operations by 19% to $6.75 million, equating to operating earnings/share of 7.7c (6.5c in 2016). Net profit after tax fell 43% to $7.75 million, the result of lower revaluation & disposal gains as directly held investment portfolio assets continued to be divested.

However, as those directly held gains fell, the company increased funds under management by 9.5% to $1.6 billion at balance date – and to $1.7 billion since then, following settlement of the 33 Broadway and Nudgee Rd, Brisbane, properties.

Augusta raised $203 million in new equity through 5 new syndications, lifting assets under management by $347 million and continuing the expansion into Australia. Recurring annualised base management fees rose 10% to $5.6 million at balance date, and have since risen to $5.8 million following settlement of 33 Broadway at the end of June and Brisbane syndicate property Nudgee Rd, settling today. Net asset value/share has risen from 94c in March 2016 to 98c.

He said Augusta, which carries buildings on its balance sheet at cost, would launch more funds this financial year, including “measured expansion” into Australia.

All those funds were about yield, but the Value-Add Fund No 1, is about total return, repositioning assets for capital gain for the investors in the fund, including Augusta itself.

Of the 5 properties bought for that fund, all in Auckland, 3 have been sold:

  • 100 Carbine Rd, Mt Wellington, unconditionally sold for $36.8 million (purchase price $33.45 million)
  • 11 McDonald St, Morningside, sold for $24 million (purchase price $17 million), and
  • 36 Kitchener St in the cbd, sold for $21 million (purchase price was $16.5 million).

Mr Francis said the company was working on options for the other Value-Add Fund properties, Hangar 54 at 54 Cook St and 151 Victoria St West.

Next task is to transform balance sheet

Next up for Augusta is to transform its balance sheet. In short, this is about moving out of direct property ownership – albeit investments such as the company’s stake in the value-add fund and short-term underwrites amount to a form of direct investment – and into portfolio management for other investors. It’s contract management for a spread of entities, expanding the external management concept which listed property entities have switched in & out of over the last 3 decades.

Mr Francis said Augusta was getting better use of its capital through that contract management than it would have by sticking to direct investment. That change led to the 19% increase in adjusted funds from operations, he said.

Instead of being “a listed property company”, Mr Francis said: “We’re a pure-play funds management initiative. We’re getting a better earn – 31% – off funds management than we were off direct property investment.”

The change in focus reduced group gearing from 35.5% a year ago to 26.6% in December and 21% now, but Mr Francis said shareholders could expect that ratio to be volatile, depending on the state of investments: “Given what we’ve got on the radar, you wouldn’t expect us to sit at those gearing levels [in the 20-25% range] very long.”

Shareholders approved amending the company’s constitution, by removing the loan:value ratio limit, with a 99.74% vote in favour of this change. The result, Mr Francis said, was that against a target gearing ratio of 35%, the actual gearing could range from 0-55% on a drawn basis.

Future borrowings will consist of 3 categories, each with its own target gearing levels:

  • Real property: A gearing ratio of about 45%, with interest serviced by the income from the relevant real properties; this category includes properties warehoused short-term, with an exit strategy
  • Investment assets (shares or co-investments in managed funds): A lower gearing ratio, with interest serviced by the distribution or dividend income from such assets, and
  • A separate working capital facility, which will be serviced by the cashflows generated from the funds management business and only used to facilitate new deals or funds initiatives.

“The key focus will be servicing the debt, as the debt profile will be low on a long-term average basis, but may increase with respect to new initiatives.”

Mr Francis said that before the constitutional change, “you will see where we’ve bought property to syndicate and underwritten ourselves, but sometimes we’ve hit a debt barrier.”

Changes for syndicate investors

Syndicate investors will see changes too, as Augusta rationalises the portfolios it manages. It’s prepared to be active in closing a syndicate, including offering investors in some of the provincial syndicates the opportunity to enter a new syndicate with better growth prospects.

Mr Francis said Augusta had put proposals to investors to sell out of syndicates and had sold $150 million of such assets in the last 12 months.

“We believe we’re exiting them at the right time, and we can get better investment outcomes. This is a win-win in our minds. We’ve certainly had strong support from investors for our exploring this avenue, and we still see plenty of opportunity for divestment.”

The NZ portfolio

Augusta’s NZ audited portfolio delivered a weighted average total return of 16% for the year to March, an unrealised average 25% equity gain since establishment and a 4.8% valuation gain in the last year. That $1 billion portfolio excludes Australian audited properties, new schemes, the directly owned portfolio, the Value-Add Fund and privately owned & other properties.

The portfolio is about two-thirds exposed to Auckland and is across all commercial sectors. Mr Francis commented: “If you believe the data, it’s hard to ignore Auckland as the preferred investment location.”

How Augusta goes about buying, and building on what it buys

Company chair Paul Duffy & director Bryce Barnett added some detail on how Augusta goes about syndication purchases.

Mr Duffy said there would be an informal discussion with the board about a proposal – at that morning’s board meeting there 3 of these – and, if an agreement to buy was prepared, the board would have a due diligence committee look at the tenants: “It’s not a passive investment. The returns we achieve, close to 16% – it’s a very active management to achieve those results.”

As Augusta looks more at Australia, and Brisbane in particular, Mr Bryce spoke up as the expert in that market segment. KCL Property Ltd, which he headed, merged with Augusta in 2014, taking $850 million of assets under management into the enlarged group, including a number of syndicated Brisbane assets.

“The Australian opportunities at the moment with the best upside are in the Brisbane region,” Mr Barnett said.

One shareholder was curious to know if Augusta improved a property during its brief ownership before passing it on to a syndicate. “Not as a rule,” Mr Francis said. “We’ll buy something then pass it on. Sometimes that will be in passive form, sometimes it will need working on. But we’re not buying, putting a bow on it and then passing it on.

“For the Value-Add Fund, all 5 properties required some sort of addition. The real opportunity there was the short lease to Bunnings and no opportunity to renew it.”

Mr Duffy added: “At McDonald St, management initiated a plan change. We were able to increase the density of that building. We then found the risk to develop it was too high and we’ve now realised it at a substantial profit.”

Future for syndication

On a question of syndication becoming more difficult if interest rates rise, Mr Duffy said: “We’re trying to tie our bank finance to the lease period with interest rate swaps & so forth, and the team lock in a chunk of bank finance. That’s why the recurring earnings become a driver.”

Mr Duffy also said Augusta had hired accountancy firm PWC to provide treasury expertise.

He also commented on likely investment in commercial property by New Zealanders, especially the impact of KiwiSaver on the flow of capital: “With KiwiSaver, you’re going to have 10-15% weighted in property. New Zealand has seen foreign capital coming into commercial real estate, so I don’t see commercial property yields going to 6.5-8% in the next 3-4 years. It’s just not possible.”

Loughlin defers retirement

John Loughlin, who’d intended to retire at this annual meeting, will stay on until the end of the year, when a replacement is expected to be named. Mr Duffy said the search for a new director was progressing but wasn’t quite complete.

And Mr Francis complimented Mr Loughlin, who joined the board in 2007, saying they’d had “many robust discussions over the years” and had disagreed as many times as they’d agreed – “and that’s what you want from a director”.

Attribution: Annual meeting.

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Celestion finance deal lawyer pleads guilty

The lawyer accused of serious fraud relating to finance for development of the Waldorf Celestion apartments hotel in 2009 pleaded guilty in the Auckland High Court on Friday to one Crimes Act charge of obtaining by deception.

Timothy Upton Slack (55) was one of 4 men charged by the Serious Fraud Office with making false statements in order to obtain a credit facility from the ANZ Bank NZ Ltd to allow Emily Projects Ltd to develop the Celestion between Anzac Avenue & Emily Place in Auckland.

The Serious Fraud Office has alleged that a loan facility of about $40 million was obtained.

Mr Slack’s name suppression was lifted, but non-publication orders relating to third parties remain in place. He faces up to 3 years’ jail. Mr Slack was adjudicated bankrupt in 2013 and automatically discharged in April 2016.

The other 3 defendants – property developer Leonard John Ross, company director Michael James Wehipeihana and self-employed consultant Vaughn Stephen Foster – will face trial on 5 June 2018.

Earlier stories:
12 April 2017: Remand on Celestion development fraud allegations
17 February 2017: SFO alleges fraud in Celestion development loan deal
9 October 2009: Apartments at centre of Blue Chip case go on market
8 May 2009: Ross’ Emily Projects starts work on ex-Blue Chip site

Attribution: SFO release, insolvency register.

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Metlifecare hits $3 billion of assets

Metlifecare Ltd reported a record profit on Monday of $251.5 million for the June year as it lifted total asset values by 14% to $3 billion.

Chief executive Glen Sowry said the company also achieved big increases in realised resale gains & development margins. The value of Metlifecare’s net tangible assets increased 21% ($1.11)/share to $6.43/share.

Mr Sowry said Metlifecare had made tremendous progress during the year: “We delivered on our growth targets with the completion of 235 new units & care beds – more than double last year’s number – while at the same time increasing the development margin to 23% from last year’s 13%. “Additionally, our sharpened commercial intensity has contributed to strong price growth and we have outperformed the market in the areas our villages are located. Demand has remained consistently high and we have maintained 98% village occupancy.”

Mr Sowry said Metlifecare would leverage the momentum this year: “Accelerated growth remains core to our strategy. Our analysis shows strong long-term sector fundamentals in our regions, including the continued increase in anticipated housing demand, an ongoing undersupply of housing development and the escalating growth of our target demographic. Projections show that the population aged over 75 in our regions will double to around 225,000 potential customers in the next 15 years.

“With our expanded development programme well established, we will also be heavily focused on further targeted land acquisitions to enhance our longer-term land bank.”

Performance highlights (2016 in brackets):

  • Reported net profit after tax up 10% to $251.5 million ($228.7 million)
  • Underlying profit, which removes unrealised gains in asset values, up 24% to $82.1 million
  • Net tangible assets/share up 21% to $6.43
  • Underlying operating cashflows up 2% to $51.3 million
  • 235 development units & care beds delivered, up 124%
  • Realised development margin up from 13% to 23%
  • Embedded value/unit up 29% to $269,000/unit
  • Loan:value ratio down from 6.3% to 4.8%
  • Final dividend of 5.8c/share, lifting total for the year by 40% to 8.05c/share.

Attribution: Company release.

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Downer discloses negative equity at Hawkins on acquisition

Downer EDI Ltd said in its annual report, out yesterday, it paid a gross consideration of $A55.4 million to buy Hawkins Construction Ltd from the McConnell family.

But in that figure there was $A2.8 million of cash balances and, “at the date of acquisition, the net asset value of Hawkins was negative $A16.3 million due to negative working capital of the business, resulting in $A71.7 million of goodwill being recognised”.

In other words, Downer paid $A52.6 million for $A71.7 million of business.

Downer announced the deal on 8 March and said it was to be completed on 31 March. However, it paid for Hawkins in 2 instalments, the first in March and the second in June.

Downer reported a provisional purchase price allocation in its June accounts because the identification of intangible assets on acquisition hadn’t been completed due to the proximity of the transaction to year end.

Downer’s own results were a mixture – net profit after tax up by less than $AA1 million, ebit also unchanged, but very low gearing and $AA2 billion of cash & facilities available to continue the growth path it’s taken in acquiring Spotless Group Holdings Ltd (offer finally closed on Monday when Downer held 87.8% of Spotless, so it can’t continue to compulsory acquisition).

Excluding Spotless earnings and any costs or synergies related to the acquisition, Downer is targeting net profit after tax of about $A190 million for the 2018 financial year, a 5% increase.

Spotless, in its target’s statement in April, provided earnings guidance of $A85-100 million net profit after tax for the 2018 financial year.

Result highlights, with no contribution from Spotless:

  • Net profit after tax up 0.5% to $A181.5 million ($A180.6 million in 2016)
  • Total revenue up 5.7% to $A7.8 billion ($A7.39 billion)
  • Earnings before interest & tax (ebit) up 0.3% to $2A77.8 million ($A276.9 million)
  • Operating cashflow of $A441.6 million, representing cash conversion of 103.1% of earnings before interest, tax, depreciation & amortisation (ebitda)
  • Work in hand $A22.5 billion ($A21.1 billion at 31 December 2016)
  • Gearing, including Spotless, 14.7% – 17.7% including off-balance sheet debt, with available liquidity of $A2 billion comprising cash of $A844.6 million & undrawn committed facilities of $A1.2 billion
  • Basic earnings/share up 5.8% to A35.8c (A38c)
  • Diluted earnings/share up 2.5% to A35c (A35.9c)
  • Net tangible asset backing/ordinary share down 54.8% to A119c (A263.3c)

Division results:

Transport:

  • Total revenue $A2.2 billion, up 16.4%
  • Ebit $A124.6 million, up 20.2%
  • Work in hand $A6.3 billion

Utilities:

  • Total revenue $A1.5 billion, up 19.1%
  • Ebit $A84.1 million, up 17.8%
  • Work in hand $A3.6 billion

Rail:

  • Total revenue $A850.2 million, up 2.9%
  • Ebit $A30.3 million, up 110.4%
  • Work in hand $A8.0 billion

Engineering, construction & maintenance:

  • Total revenue $A2.0 billion, up 6.2%
  • Ebit $A52.3 million, up 8.5%
  • Work in hand $A2.6 billion

Mining:

  • Total revenue $A1.3 billion, down 18.5%
  • Ebit $A83.4 million, down 35.8%
  • Work in hand $A2 billion

New Zealand & Pacific:

  • Total revenue $A1.54 billion ($A1.3 billion)
  • Segment assets $A687 million ($A546 million)
  • Acquisition of segment assets $A102 million ($A20.5 million)

Earlier story:
9 March 2017: McConnells follow up Harker deal with Hawkins sale to Downer
Attribution: Downer annual report & release.

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Heartland notes offer heavily oversubscribed

Heartland Bank Ltd has closed its 5-year notes offer heavily oversubscribed and it’s accepted the maximum $50 million of oversubscriptions on top of the $100 million sought from institutional & New Zealand retail investors. There’s no public pool.

The company closed the bookbuild for the 5-year unsecured, unsubordinated, medium-term, fixed-rate notes today and set the interest rate at 4.5%/year, a 1.88%/year margin over the underlying 5-year swap rate.

The notes will be issued on 21 September and will mature on 21 September 2022. Heartland said they were expected to have a credit rating of BBB from Fitch Ratings.

Attribution: Company release.

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Cotterill sees opportunity for NPT as tenants quit

Image above: The AA Centre on the corner of Albert & Victoria Sts in downtown Auckland, between the bungy jumps of the Royal International site & Sky Tower, and with works underway at the corner for the city rail link tunnel & station.

Listed property investor NPT Ltd has tenants leaving 2 of its 5 properties – one of them quitting 6 office floors – and the new board sees opportunity.

Bruce Cotterill.

New chair Bruce Cotterill was dying to tell shareholders about impending investment activity at the annual meeting in Auckland on Friday, but didn’t quite have everything in place to make the revelations.

“While we aren’t in a position to provide any detail at this time, we are working on a number of initiatives that we expect will deliver better returns to our shareholders and would set us on a clear path to growth. Although it is early days in our tenure as directors, this board has made rapid progress and shareholders may expect an update in the coming weeks as some of our initiatives come to fruition,” he said.

NPT has had a chequered history since its inception as the National Property Trust in 1994, but one thing about it hasn’t changed: it started small and has remained so, getting its portfolio over $200 million in value for a while but now down at $174 million.

Its change in prospects began last September when Augusta Capital Ltd bought 9.26% of its shares from the Accident Compensation Corp, then proceeded to make an offer for its management contract. In October, Augusta said it also wanted NPT to buy a portfolio of 3 unidentified properties valued at $329 million, and it wanted to help NPT grow its portfolio to improve returns.

This latter was odd, because Augusta had whittled down its own portfolio in favour of managing syndicates. NPT’s board baulked, and so began a struggle for control that cost NPT $2 million.

The loser, at a special shareholder meeting in April, was Kiwi Property Group Ltd, which also wanted NPT to buy properties – 2 assets valued at $230 million, the Majestic Centre in Wellington & North City Centre at Porirua, now on the market through an expressions of interest process.

Augusta won the fight for control after lifting its holding to 18.85% and the total  vote against Kiwi’s proposal was 54.85%.

Mr Cotterill was installed as independent chair; a recently appointed member of the old board, Carol Campbell, remained as an independent (and had her position confirmed at Friday’s meeting); and Augusta’s new chair, Paul Duffy, and another independent, Allen Bollard, were elected.

AA moving to Sale St

Mr Cotterill told shareholders AA Insurance had recently informed the company it intended to relocate to a new office building under construction by Mansons on Sale St in February 2018, although its lease on its 6 floors in the AA Centre – right above the Aotea station being constructed beneath its Albert-Victoria St windows – runs until June 2019.

Said Mr Cotterill: “This departure will provide us with a further opportunity for refurbishment & repositioning of the building in the Auckland City office leasing market. Leasing inquiry for the floors that are to become vacant is very strong and we expect to be able to lease them relatively quickly.”

He said NPT had been working on leasing the AA space for a couple of months: “We don’t have signatures on paper but we do have good inquiry.”

Print Place – repositioning or disposal?

In Christchurch, NPT’s property at 17 Print Place, Middleton, recently lost one of its 3 tenants and will lose another in December. On this, Mr Cotterill told shareholders the vacancy & shortening weighted average lease term had resulted in the value of the property easing. But again Mr Cotterill saw opportunity: “This vacancy may provide us with an opportunity to reposition the property.”

Mr Duffy said it was over-rented and had too much office space relative to its warehousing.

One shareholder questioned the board about NPT being an absentee landlord, but Mr Cotterill responded: “We agree with you, and we’ve appointed Colliers [as manager of its Christchurch properties]. They haven’t got any tenants yet because we only agreed to appoint them this morning.”

Mr Cotterill agreed with another shareholder that selling Print Place was also an option. He said the new board had 2 strategies to focus on – growing the portfolio, and repositioning what it already owned.

He cautioned that growth wouldn’t be easy: “We’re trying to rebuild when prices are at their peak. That’s not the easiest thing to do.”

He said the board recognised that “mum & dad” shareholders relied heavily on dividends and the board intended to maintain dividends at their present level. On Friday afternoon the board announced a 0.9c/share first-quarter cash dividend, carrying 0.1544c/share of imputation credits, and gave full-year guidance that total dividends would be at least the same as last year, 3.6c/share.

Again, Mr Cotterill presented the optimistic outlook: “This represents a conservative approach to 2018 financial year distributable profit while the board considers a number of options before it for NPT’s future direction. A further update can be expected on the board’s plans for NPT in the coming weeks.”

At the moment, NPT’s management remains internal – Kiwi’s proposal to buy it was defeated in April and Augusta’s proposal wasn’t put to that meeting, but Mr Cotterill said the outcome of the April meeting had raised interest in taking over the contract. One party had turned its talks into a proposal and the board was discussing the possibility with another: “There’s nothing concrete,” he said.

Earlier stories:
2 June 2017: NPT profit eaten up in battle over its future
26 April 2017: Cotterill takes chair at NPT
21 April 2017: Augusta wins fight for NPT
7 April 2017: Augusta lifts stake in fight for NPT
31 March 2017: An unlikely twist could still derail NPT’s Kiwi deal
31 October 2016: Fourth era for NPT a hard option to combat
27 September 2016: Augusta buys 9% of NPT

Attribution: Annual meeting.

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Investore to give board majority to independents

Investore Property Ltd’s board has proposed adding a third independent director, thus outnumbering the 2 appointed by the company’s manager, Stride Investment Management Ltd.

Stride said on Thursday the Investore board had proposed rebalancing the board – “for the benefit of shareholders & the company” – following discussions with Stride. The 2 parties had to get NZX approval to work their way around related party & associated person rules to change the board structure.

The proposal will go to the vote at Investore’s annual meeting on Friday 8 September.

Investore owns a portfolio of 39 large format stores. Stride Property Group owns 19.9% of Investore as well as its own property portfolio & the management business.

Earlier stories:
29 May 2017: Investore outperforms listing forecast
30 September 2016: Investore completes acquisition of 14 Countdown supermarkets
13 July 2016: Stride stapled securities & Investore start trading
13 June 2016: Stride unveils stapled structure & Investore IPO

Links:
Investore
Stride Property

Attribution: NZX documents.

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