Archive | Stride (DNZ)

Rest of Queensgate shopping centre to reopen

Stride Investment Management Ltd said on Wednesday it would reopen the balance of the Queensgate shopping centre in Lower Hutt on Thursday 6 April following completion of demolition of a portion of the carpark & its cinema complex.

The centre was closed for inspection after the Kaikoura earthquake in November and partially reopened 11 days later. It will be reclad and a ground-level carpark put in the place of the current demolition site. Some egress points will also change.

Stride Investment Management has previously announced it will rebuild the cinema complex. In the meantime, regional centre manager Jan Plummer said, the ground-level parking & cladding would be a medium-term solution.

“Shrink-wrapping the building to create protection from the elements will allow contractors to take their time in creating the best possible medium-term design aesthetic, with the intention being that the shrink wrap will still be in place at the time of reopening to allow this work to continue.”

Ms Plummer said retailers whose premises remained closed because of the adjacent demolition would be given a confirmed date to access their stores in the next week.

Queensgate is owned by the Diversified NZ Property Trust.

Attribution: Company release.

Continue Reading

Stride redesigns Johnsonville mall in new consent application

Stride Property Group has filed a new resource application for a smaller upgrade of the Johnsonville shopping centre, up the Ngauranga Gorge, 7km north of central Wellington.

In 2009, Stride – then known as DNZ Property Fund Ltd – got consent to increase the centre from 10,000m² to 32,000m². That version was to have contained a 4-level parking building with up to 1280 parking spaces.

The new version will take the mall to 26,000m² with 900 parking spaces.

Under Stride’s new stapled securities structure, Stride Property Ltd & the Diversified NZ Property Trust own the Johnsonville centre in a 50:50 joint venture and Stride Investment Management Ltd, the other side of the Stride group, manages them & the centre.

Stride chief executive Peter Alexander said yesterday the company had taken account of contemporary retail design principles & feedback from a number of sources to redesign the proposal: “Amongst other changes proposed in the updated design, we have reduced the overall scale of the project & the mix of retail uses. We have proposed a dining precinct, which we believe could become a destination in itself, and provided space for a boutique cinema within the complex. These elements will complement the mix of retail outlets & the food court that we have previously included in our design proposals.”

The new design provides for 120 specialty retailers. “Some shops will be located on Johnsonville Rd to preserve & upgrade the community-oriented main street environment. It is proposed that the Countdown supermarket will remain as an anchor tenant in the redeveloped shopping centre.

“This is an important step forward and provides a proposition that we can take to the market. Assuming that the application is approved by the Wellington City Council, the next phase is leasing precommitment, design, building consent and then construction procurement. The development is likely to be constructed in stages and we would target a construction start on site sometime between late 2017 & late 2018, subject to progress with approvals & preleasing.”

Image above: An impression of the corner of Johnsonville & Broderick Rds in the new design.

Earlier stories:
24 August 2016: Stride-managed trust settles 2 Westfield deals
13 July 2016: Stride stapled securities & Investore start trading
13 June 2016: Stride unveils stapled structure & Investore IPO
24 July 2015: DNZ looks to grow investment management as first Westgate project nears completion

Attribution: Company release.

Continue Reading

Stride-managed trust settles 2 Westfield deals

The Diversified NZ Property Trust, a wholesale investment entity managed by Stride Property Group, settled its purchase of 2 Westfield shopping centres from Scentre Group as scheduled on Monday.

The trust has bought Queensgate in Lower Hutt & Chartwell in Hamilton for $445 million.

Ownership has been transferred to Diversified’s trustee, Equity Trustees Ltd, and management to Stride Investment Management Ltd under an initial 10-year management contract.

Stride said when the Overseas Investment Office approved the deal on 1 August that new-look branding would be unveiled at each centre on settlement day, but that hasn’t happened yet, apart from dropping the Westfield name.

Attribution: Company release.

Continue Reading

Propbd on Q F5Aug16 – Wiri site for Turners, Ryman at Hobsonville, Metlifecare unconditional at Red Beach, port alliance, Stride buy OK

Turners buys Wiri property for anticipated business growth
Ryman buys at Hobsonville
Metlifecare unconditional on Red Beach site
New alliance between Auckland & Napier ports
Stride acquisition of 2 Westfield malls gets OK

Turners buys Wiri property for anticipated business growth

Turners Ltd has bought a 1ha site on the corner of Roscommon Rd & Vogler Drive in Wiri for $4.8 million. Chief executive Todd Hunter said on Wednesday the company bought the property to extend its footprint into South Auckland and to allow for the expansion of Turners’ fast-growing truck & machinery business.

“Acquisitions of strategic property sites are becoming an increasingly important part of the growth strategy for Turners Group NZ (ex-Turners Auctions) to allow for further footprint expansion as the business grows, and to achieve stronger control over property overheads. As part of this strategy Turners have previously purchased properties in South Auckland & Christchurch.”

This property is a highly visible corner site with easy access to motorways & arterial roads.

Ryman buys at Hobsonville

Ryman Healthcare Ltd will invest over $200 million developing a new 4ha retirement village site on Scott Rd, Hobsonville.

Ryman chair David Kerr told the annual meeting in Whangarei on 27 July the village would offer independent living & care options for over 400 residents.

The company also expects to have work underway on its second site at Brandon Park in Melbourne this year. In February, Ryman announced it had bought a third site at Burwood East and was on target to have 5 villages open in Melbourne by 2020.

Metlifecare unconditional on Red Beach site

Metlifecare Ltd said on 29 July it had gone unconditional on acquisition of a site on the former Peninsula golfcourse at Red Beach for its 16th Auckland retirement village. Settlement is due on 19 August and a resource consent hearing is scheduled for 30 August.

Chief executive Glen Sowry said the village would become home to over 500 residents and was planned to provide a full range of living options, including a 68-bed care home & a retail precinct.

Work to re-contour the golfcourse is intended to start soon, so development of the village can start in October 2017. Construction of the first stage is planned to be completed and the first residents welcomed in 2019.

Earlier story:
13 January 2015: Metlifecare buys 5ha of Red Beach golfcourse for new retirement village

New alliance between Auckland & Napier ports

Ports of Auckland Ltd & Napier Port announced a strategic alliance on Wednesday to provide operational, economic, sustainability & community benefits.

Ports of Auckland chief executive Tony Gibson said the partnership would allow the 2 ports to work together to find ways to optimise services for freight customers and achieve further scale & efficiencies in the supply chain: “It will prompt even greater competitive contestability & resilience in New Zealand’s supply chain to help lower costs to exporters & importers.

“There is a natural fit between Ports of Auckland & Napier Port. We share a similar way of working, common customers & supply chain opportunities and have similar ownership structures, so that’s a great base to work from.”

Stride acquisition of 2 Westfield malls gets OK

The Overseas Investment Office has approved Stride Property Group’s acquisition of the Westfield Queensgate shopping centre in Lower Hutt and the Westfield Chartwell shopping centre in Hamilton, through its wholesale investment vehicle, the Diversified NZ Property Trust.

Stride announced last November that Diversified had entered into an agreement with Scentre Group to acquire the shopping centres for $445 million.

Stride Investment Management Ltd, part of the Stride Property Group, manages Diversified’s property portfolio under a 10-year contract.

Stride chief executive Peter Alexander said new-look branding would be unveiled at each centre on settlement day. Stride expects to complete the deal by 22 August.

Earlier story:
27 November 2015: Scentre sells 3 malls to locals, one to go

Attribution: Company releases.

Continue Reading

Stride stapled securities & Investore start trading

Trading in Stride Property Group’s 2 new shares opened yesterday with its stapled securities priced at $1.98 and shares in the new Investore Property Ltd hit $1.63, a 9.4% premium to the bookbuild price of $1.49, which was at the top of the range for the initial public offering.

Stride has thus converted itself from a property company with in-house management into 3 entities (2 tied to each other), with a fourth to come.

The management unit, Stride Investment Management Ltd, is one half of the stapled security. The other half is office, retail & industrial portfolio owner Stride Property Ltd, which will retain its PIE (portfolio investment entity) status.

The management company will also manage the breakout business listed yesterday, Investore Property, set up to take over a small portfolio of supermarkets from Stride and to increase its investment in the large-format retail sector. It also has PIE status. Investore will own a portfolio of 39 properties with an independent valuation of $641.4 million at 31 March 2016.

The fourth entity is an Australian wholesale fund, Diversified NZ Property Fund Ltd, which is in the process of restructuring to become Diversified NZ Property Trust.

Investore had reserved $15 million for allocation to the Stride shareholder offer as part of its $185 million IPO, but this was cut to $12 million so Stride could maintain its intended 19.9% stake.

Investore received applications under the shareholder offer in excess of $45 million, which were scaled back. All applications were fully allocated up to 3000 shares. Beyond that, a scaling rate of 21.7% was applied, subject to a maximum allocation of 10,000 shares. Stride said a significant portion of the IPO was allocated to Stride shareholders through the institutional offer and indirectly to clients of NZX firms who participated in the broker firm offer. In addition to any participation in the IPO, all Stride shareholders received one share in Investore for every 4 shares held in the old Stride.

Holders of the stapled securities will receive returns from the property ownership activities (taxed as a PIE dividend on distribution) & real estate investment management activities (taxed as an ordinary dividend).

Image above: Investore chair Mike Allen & Stride chief executive Peter Alexander ring the stock exchange bell for Investore’s listing.

Earlier story:
13 June 2016: Stride unveils stapled structure & Investore IPO

Attribution: Company releases.

Continue Reading

Maat settles Ellerslie purchase from Stride

Maat Property Group Ltd managing director Neil Tuffin said yesterday the syndication group had raised $19.3 million of equity from 181 investors to fund the $31.8 million purchase of Unisys House at 650 Great South Rd, Ellerslie.

Mr Tuffin said the public offering had closed oversubscribed and Maat settled with the vendor, Stride Property Ltd, 3 weeks ago.

The sale agreement was $1.3 million above Stride’s 31 March valuation but included $2.9 million of provisions in the event certain tenants exercise their early termination rights, or where parts of the premises, the subject of existing short-term leases, are not relet.

The 4-storey building, constructed in 1997, has a net lettable area of 8335m², floorplates of 1995m² and basement & podium parking for 299 cars. Stride’s 2015 annual report showed its net contract rental at $2.219 million on 84% occupancy, mainly by Inland Revenue & Health Alliance, giving a market cap rate of 8.5% & contract yield of 7.84%.

Earlier story:
20 April 2016: Stride agrees sale of Penrose office building

Attribution: Mat release, Stride report.

Continue Reading

Propbd on Q F1July16 – Stride restructure approved, Arvida settles buy & Metlifecare settles exit from Masterton

Stride gets 82% approval for restructure
Arvida settles Masterton acquisition
Metlifecare settles sale of its Masterton village

Stride gets 82% approval for restructure

Stride Property Ltd shareholders approved changes to its constitution by an 82.4% vote in support yesterday, enabling the restructure which includes creating stapled securities and the listing of a new company, Investore Ltd.

Stride’s existing shares will stop being quoted on Monday 11 July and the shares in Stride Investment Management Ltd will be listed the next day. For every share in Stride, shareholders will get a share in the manager, and they’ll be stapled so they can’t be sold separately.

Stride shareholders will also get one Investore share for every 4 existing Stride shares, and will initially hold 33.4-38.2% of Investore.

Stride will retain 19.9% of Investore and is seeking $185 million in an IPO (initial public offering). Investore’s shares were valued in a range of $139.5-204.5 million, and the indicative price range for the IPO was $1.37-1.49/share. After the bookbuild, the price was set at $1.49.

Investore confirmed yesterday that the acquisition of the portfolio of properties from Shopping Centres Australasia Property Group Trustee NZ Ltd was unconditional and it intended to settle its acquisition of the tranche 1 assets on 12 July. Investore expects to allot shares under its IPO on 11 July.

S&P Dow Jones Indices said yesterday it would add Investore to all S&P/NZX indices of which Stride is a constituent after the close of trading on Wednesday 6 July at a zero price. No other stocks will be removed, so the S&P/NZX 50 & S&P/NZX 50 Portfolio indices will temporarily carry an additional constituent.

Earlier story:
13 June 2016: Stride unveils stapled structure & Investore IPO

Arvida settles Masterton acquisition

Arvida Group Ltd said yesterday it had settled its $20.7 million acquisition of the Lansdowne Park retirement village in Masterton. The village has 93 retirement village units, 50 aged-care beds & over 170 residents.

Arvida funded the purchase by drawing $14.7 million of debt and issuing $6 million of new shares to the vendors.

Earlier story:
27 May 2016: Arvida well ahead of forecasts

Metlifecare settles sale of its Masterton village

Metlifecare Ltd confirmed yesterday it had settled the sale of its Wairarapa Village in Masterton to a group headed by Mark Durling for $6 million.

Metlifecare chief executive Glen Sowry said the sale presented the company with an opportunity to reallocate capital to continue its focus on greenfield & brownfield developments in high growth areas that represented stronger future yields.

Earlier story:
25 April 2016: Metlifecare sells Wairarapa Village

Attribution: Company releases.

Continue Reading

Investore offer price set at top of range

Investors & brokers have committed to subscribe for $185 million of shares in Investore Property Ltd through the bookbuild for the initial public offering by Stride Property Ltd. The price for the offer has been set at $1.49/share), at the top of the indicative price range.

Investore has determined to allocate $170 million of the offer to the institutional & broker firm offer and has reserved $15 million for allocation to the Stride shareholder offer, which closes on Tuesday 5 July. Investore has also received commitments to subscribe for the full $15 million reserved to the Stride shareholder offer to the extent not taken up by Stride shareholders.

In addition to any participation in the offer, all Stride shareholders will be given one share in Investore for every 4 shares held in Stride as part of the demerger of Investore.

The Investore shares under the offer will be allotted on Monday 11 July and start trading on the NZX main board on Tuesday 12 July.

Investore will invest in the large format retail property sector. Key metrics:

  • Implied cash dividend yield (2018 financial year): 5.1%
  • Implied gross dividend yield (for a 33% tax payer, 2018 financial year): 7.6%
  • NTA/share (2017 financial year): $1.46
  • Price:NTA/share (2017 financial year): 1.02 x

Earlier stories:
20 June 2016: Stride moves bookbuild date forward
13 June 2016: Stride unveils stapled structure & Investore IPO

Attribution: Company release.

Continue Reading

Stride moves bookbuild date forward

Stride Property Ltd said on Friday the new company it intends to list, Investore Property Ltd, would undertake its initial public offer bookbuild process on Tuesday.

The final price under the offer will be announced on Wednesday. Also on Wednesday, the broker firm offer will open.

Stride chair Tim Storey said these dates were earlier than those set out in the product disclosure statement, but all other dates for the offer were unchanged.

Key dates:

  • Stride shareholder offer opens Monday 20 June
  • Institutional offer bookbuild, pricing & allocation, Tuesday 21 June
  • Final price announcement, Tuesday 22 June
  • Broker firm offer opens Tuesday 22 June
  • Broker firm offer & Stride shareholder offer close Tuesday 5 July
  • Settlement & allotment Monday 11 July
  • NZX main board trading to open Tuesday 12 July
  • Stride shareholder meeting to approve its own move to stapled securities, Thursday 30 June at 9am at Rydges Auckland

Earlier story:
13 June 2016: Stride unveils stapled structure & Investore IPO

Attribution: Company release.

Continue Reading

Stride unveils stapled structure & Investore IPO

Stride Property Ltd began a series of actions last Thursday which will culminate in the NZX-listed company splitting into 2 stapled securities – one property, the other management – and following this with the listing of a separate investor in large-format retail property, which the Stride manager will run.

Stride called a shareholder meeting for Thursday 30 June (Rydges Auckland at 9am) to approve its move to stapled securities. The 2 stapled companies will have the same boards and will be managed by staff who are all now employed by the management company.

Also last Thursday, Stride signed up through a subsidiary to buy an NZ portfolio of 14 Countdown supermarkets for $267.4 million from Shopping Centres Australasia (SCA Property Group), which at that point had a portfolio of 88 properties across the 2 countries.

This separate property buyer, Investore Property Ltd, was a Stride subsidiary called Stride LFR Ltd until last Friday, and under that name was the buyer last November of a portfolio of 19 Countdown supermarkets from the Pears Group of the UK’s Antipodean Supermarkets Ltd & Antipodean Properties Ltd for $287 million.

Diversified NZ Property Fund Ltd, managed by Stride, bought 2 Westfield malls last November from Scentre Ltd, Queensgate in Lower Hutt & Chartwell in Hamilton, for $445 million. In the present restructure, Diversified’s portfolio has been transferred to the new Diversified NZ Property Trust and will grow to $550 million, and the new company, Investore, will hold a $641 million portfolio of 39 properties – the 14 new acquisitions, the 19 supermarkets bought last November, and 6 others sold by Stride to its subsidiary since April.

Stride will retain 19.9% of Investore and will seek $150-185 million in an IPO (initial public offering, except there won’t be any shares available for the public outside brokers’ stocks). Investore lodged a product disclosure statement for the IPO on Friday. Those shares have been valued in a range of $139.5-204.5 million, and the indicative price range for the IPO is $1.37-1.49/share.

Goldman Sachs NZ Ltd has been appointed as sole arranger, bookrunner & lead manager for the offer and acted as financial advisor for the demerger & restructuring. Deutsche Craigs Ltd & Forsyth Barr Ltd have been appointed co-managers for the offer.

Stride’s existing shares will stop being quoted on Monday 11 July and the shares in Stride Investment Management Ltd will be listed the next day. For every share in Stride, shareholders will get a share in the manager, and they’ll be stapled so they can’t be sold separately.

Stride shareholders will also get one Investore share for every 4 existing Stride shares, and will initially hold 33.4-38.2% of Investore.

The vendor of Investore’s new assets, Shopping Centres Australasia (SCA Property Group), is an internally managed, ASX-listed real estate investment trust (reit) owning a portfolio of quality sub-regional & neighbourhood shopping centres & freestanding retail assets focused on convenience retailing in Australia & New Zealand.

The agreed sale price for the 14 New Zealand centres, $NZ267.4 million, represents a cap rate of 6.6% and a premium of 6.5% to the 31 December 2015 book value of the assets.

SCP will use the funds to cut its gearing to 25%. Chief executive Anthony Mellowes said: “We are very pleased to have achieved an attractive sale price for our NZ portfolio. Since listing in December 2012, these assets have delivered an unlevered pretax $NZ return of 14%/year for SCP. At the sale price, the after-tax yield on the NZ assets is less than 6%, so we believe that exiting New Zealand and reinvesting into core Australian assets will maximise value for SCP unitholders.”

Stride is buying the 14 supermarket Countdown portfolio from SCP’s New Zealand arm, Shopping Centres Australasia Property Group Trustee NZ Ltd. All are leased to Countdown operator General Distributors Ltd.

Stride expects the transaction to become unconditional on 30 June and to complete the acquisition in 2 tranches in July & September.

Stride chair Tim Storey said Investore’s portfolio of 39 properties had a weighted average lease term of 14.8 years, a total value of $641.4 million, and the company was expected to deliver an implied cash dividend yield of 5.1-5.3%, and implied gross dividend yield of 7.6-8.0%, based on forecast financial information for the March 2018 year.

Growth of the funds management business as a part of Stride meant it had been likely to lose its tax status as a PIE (portfolio investment entity). Through the restructure & IPO, Stride will retain that status and Investore will acquire PIE status.

NZX links:
Stride Property – Investore IPO & restructuring update – 100616
Stride Property – Notice of special meeting of shareholders & explanatory memorandum
Stride Property – Variation proposal & restructuring presentation
Investore Property Ltd presentation

Company links:
SCA Property Group
Stride Property

Earlier stories:
1 June 2016: Stride profit hike translates into small shareholder gain, new stapled structure on way
27 November 2015: Scentre sells 3 malls to locals, one to go
9 November 2015: One Countdown portfolio settlement to go for Stride
24 July 2015: DNZ looks to grow investment management as first Westgate project nears completion

Attribution: Company releases.

Continue Reading
WordPress Appliance - Powered by TurnKey Linux