Archive | Property For Industry

PFI buys one, sells one in East Tamaki

Property for Industry Ltd has bought an industrial property at 11 Turin Place and settled the sale of another one at 27 Zelanian Drive, both in East Tamaki.

11 Turin Place has 6936m² of warehouse, 1072m² of breezeway canopies and 457m² of office & amenities on a 1.9ha site, and is leased for 15 years to Thermakraft, supplier of building & wall wrap, roofing underlay & window flashing tape. The lease provides fixed rental growth of 4.55% every 2 years.

PFI bought the property in a sale & leaseback transaction for a net $14.2 million, representing a yield on purchase of 6.5%.

The company announced its sale of the vacant industrial property at 27 Zelanian Drive, for a net sale price of $8.3 million, on 13 December.

Attribution: Company release.

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PFI sells vacant East Tamaki property

NZX-listed Property for Industry Ltd has sold the vacant 27 Zelanian Drive, East Tamaki, to an owner-occupier for a gross $8.475 million.

General manager Simon Woodhams said yesterday the price represented a yield on market of 6.95% and was above current book value. The transaction is due to settle on 1 February.

“PFI has sold around $45 million of property over the last 3 years, taking advantage of high levels of demand from both investors & owner-occupiers. The funds from the sale of PFI’s property at 27 Zelanian Drive will be recycled into new capital projects.”

Attribution: Company release.

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Revaluations lift PFI portfolio by 9%

Property for Industry Ltd said on Friday independent valuations lifted the value of its property portfolio by 9% ($88 million) to $1.09 billion.

PFI’s portfolio of 84 properties was valued at $987 million a year ago. On top of the valuation lift, capex & property-related prepayments added $16 million.

General manager Simon Woodhams said: “Demand for industrial property from both investors & owner-occupiers remains high, spurred on by low interest rates. Rental growth, both forecast & already achieved, is also supporting values.”

Independent valuers CBRE, Colliers International, Jones Lang LaSalle & Savills carried out the valuations, which remain subject to finalisation & audit. The final independent valuation outcome will be confirmed in the results for the December year to be announced on Monday 13 February.

Attribution: Company release.

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Fewer revaluations cut PFI profit

Property For Industry Ltd’s first-half profit after tax has fallen 38%, from $36.4 million last year to $22.5 million, after allowing for non-operating income & expenses and deferred tax.

Chairman Peter Masfen said this week the main driver of the decrease in profit after tax was a return by the company in 2016 to its usual approach for the valuation of investment properties at the end of each half year.

In the first half of 2015, all investment properties were revalued and the fair value gain was $25.6 million; in the first half of 2016, only 8 properties were revalued and the fair value gain was $10.6 million.

The company increased first-half operating revenue by 9.7% to $35.2 million ($32.1 million), but said increases due to acquisitions ($1.7 million), completed developments ($0.4 million) & positive leasing activity ($1.2 million) were partially offset by decreases due to disposals ($0.2 million).

Reductions in interest expense & bank fees driven by a lower weighted average cost of debt reduced the ratio of operating expenses to operating revenues from 47.7% to 39.9%. The company’s ratio of current tax:operating earnings fell from 18.8% a year ago to 18.4%.

Profit after tax amounted to 5.01c/share and distributable profit rose 12.3% to 3.77c/share (3.36c).

For the full year, the company has increased distributable profit guidance to 7.7c/share before management performance fees, 7.4c/share after those fees.

The revaluation increased net tangible assets by 1% to 141.9c/share (140.5c).

32% of contract rent varied, leased or reviewed during the first half, portfolio occupancy was at 99.5%.

Property For Industry lifted its portfolio value from $930 million at June 2015 to $987 million in December and to $1.01 billion at June 2016.

Gearing was at 33.4%, the interest cover ratio 3.5 times.

It cut the portfolio passing yield from 7.3% in December to 7.2%.

The company’s $25.9 million development of 4 pre-leased bulk store facilities at 124 Hewletts Rd, Mt Maunganui, was completed in June  ahead of schedule & under budget. A new $1.9 million warehouse at 54 Carbine Rd & 6A Donnor Place, Mt Wellington, was also completed and the company is also at advanced stages of planning for a $5 million industrial development on a portion of the remaining land at 212 Cavendish Drive, Manukau.

Attribution: Company release.

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Propbd on Q W16Dec15 – listeds: hotels exit franchise, Highbrook deal finalised, PFI lift, Zara coming to NZ, Rainbow tick, Eastgate leases

2 hotels sold out of Millennium & Copthorne franchise
Goodman completes 2012 Highbrook acquisition
PFI gets 5% valuation lift
Zara the next big name for Sylvia Park
Fletcher Building scores the Rainbow tick
3 Eastgate lease agreements go unconditional

2 hotels sold out of Millennium & Copthorne franchise

Millennium & Copthorne Hotels NZ Ltd said yesterday its franchise & management arrangements for the Kingsgate Hotel Hamilton & Kingsgate Hotel Whangarei would end in 5-7 weeks. Managing director BK Chiu said: “Both of these have been owned by the Butcher family, who have been Millennium & Copthorne’s franchise partners for over 18 years. The family made the decision that the time was now right for them to sell the hotels and agreement has been reached with a new owner.

Therefore, Millennium & Copthorne will no longer represent these hotels at the conclusion of the respective franchise agreements on 25 January for Kingsgate Hotel Whangarei and 11 February for Kingsgate Hotel Hamilton.”

Goodman completes 2012 Highbrook acquisition

NZX-listed Goodman Property Trust issued 37,335,624 units to ASX-listed Goodman Group at $1/unit on Monday to complete payment for the $186.6 million December 2012 acquisition of partners’ interests in the 17.5ha Highbook Business Park.

Goodman Group took all its payment in units, half deferred. Fisher (interests associated with the estate of the late Sir Woolf Fisher, headed by Sir Noel Robinson) took $56 million in cash, the rest in units.

The trust bought 50% of Highbrook Development Ltd from Goodman Group and Fisher (25% each), and 25% of HBPL Properties from Fisher.

Since 2012, the trust has announced 15 new projects at Highrook costing a total $158.7 million, adding over 80,000m² of rentable area to the estate and generating $60 million in valuation gains.

The business park has over 70 businesses occupying 340,000m² in over 40 buildings. Its present value is $850million, with $60 million more work in progress.

PFI gets 5% valuation lift

Property For Industry Ltd said yesterday independent annual valuations were expected to increase the value of its portfolio by 5% ($47 million) to $985 million, and it confirmed earnings & dividend guidance.

PFI began the year with a portfolio of 79 properties valued at $876 million. It acquired 6 properties for $58 million and will have disposed of one property with a carrying value of $9 million (unconditional at 31 December, settlement 31 March 2016). Capex & property-related prepayments added $13 million.

CBRE, Colliers International & Jones Lang LaSalle carried out the valuations, which remain subject to finalisation & audit. The company will release its full-year results on Monday 15 February.

Zara the next big name for Sylvia Park

Kiwi Property Group Ltd said on Monday international fashion giant Zara would open its first New Zealand store at Sylvia Park late next year.

In October, Kiwi said another international fashion retailer, H&M, would also open at Sylvia Park late next year.

Zara has over 2000 stores in 88 countries. H&M is one of 6 brands developed by H&M Hennes & Mauritz AB of Sweden, which has 3700 stores around the world.

Chief executive Chris Gudgeon said Kiwi Property would invest $11.5 million to accommodate Zara in a new ground-level store in the mid-mall area.

He said the company was evaluating a $150 million 20,000m² retail expansion of Sylvia Park and was considering a range of options, including adding further international retailers, more specialty retail stores, department stores & parking. It’s in the predevelopment phase, which includes design, consenting & pre-leasing. Mr Gudgeon said construction could start in 2017 for a possible 2018 completion.

The company is also investigating a potential office development at Sylvia Park, as part of its town centre vision for the site.

Fletcher Building scores the Rainbow tick

Fletcher Building Ltd said on Monday it had scored the Rainbow tick – certification demonstrating it’s a business that’s inclusive for people who are lesbian, gay, bisexual, transgender, takatapui or intersex.

Chief executive Mark Adamson said Fletcher was New Zealand’s first construction & building materials company to achieve the Rainbow tick.

Rainbow Tick’s Michael Stevens said: “We were surprised when Fletcher Building contacted us as we hadn’t thought to approach a construction company, which shows even at the Rainbow Tick we need to challenge our own stereotypes of what sort of organisations want to be inclusive.”

3 Eastgate lease agreements go unconditional

NPT Ltd said yesterday 3 lease agreements at the Eastgate Shopping Centre in Christchurch have gone unconditional.

They are:

  • 900m² on the upper level to be occupied by Linwood Avenue Medical Centre in a new purpose-built integrated family health centre, in part of the space vacated by Farmers after the 2011 earthquake. The lease is for an initial term of 9 years from construction completion
  • 1200m² in the balance of the area vacated by Farmers, to be occupied by a cluster of social services providers that will co-locate into new office space, including Aviva, Barnardo’s, Family Help Trust, Red Cross & He Waka Tapu. The lease is for an initial term of 6 years from construction completion
  • A new standalone Restaurant Brands outlet at 283 Linwood Avenue, to be built on a site previously occupied by a house demolished this year. The lease is for an initial term of 12 years from construction completion.

NPT managing director Kerry Hitchcock said Hawkins Construction Ltd had been appointed for the works on the upper level. All 3 projects will start in January for completion in mid-2016.

NPT estimated the combined capex would be $7 million and would provide an annualised yield on cost of 9.25%. NPT will fund these developments from its existing bank facility.

Attribution: Company releases.

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Propbd on Q Th26Nov15 – Council on demolition dogs & the north; auctions, Goodman settles, PFI pleased

Council action on heritage demolition, dog access, northern breakaway, Kaipara Harbour
5 apartments sell at Ray White auction
14 “intensive living” units, 2 sections & a showroom sell at Barfoots
4 apartments & a farm sell at Bayleys
All 4 sell at City Sales auction
Goodman settles 2 Addington sales
PFI pleased to exit Cavendish Drive property

2.40pm:
Council action on heritage demolition, dog access, northern breakaway, Kaipara Harbour

Auckland Council’s governing body:

  • Will get a report back in February on a proposal from Orakei board member Troy Churton seeking amendment to governing body resolution regarding the process for determining notifications for demolition of pre-1944 buildings
  • Agreed today to change the dog access rules in the Albert-Eden ward (since 2013, local boards have been able to use different summer times or seasons from the standard bylaws, which required governing body approval), and
  • Endorsed a response to the Local Government Commission on a proposal from the Northern Action Group for a North Rodney unitary council (the commission sought views on impacts, not a view on the action group’s proposal); Cllr George Wood added a number of extra difficulties the proposed unitary council might encounter.

The council also considered a memorandum of understanding on establishing a joint working party on the Kaipara Harbour in the confidential section of its agenda because of some confidential information from the Government, but expected to release its resolutions publicly.

5 apartments sell at Ray White auction

5 of the 8 apartments auctioned at Ray White City Apartments today were sold under the hammer. Auction results:

Chatham, 70 Pitt St, unit 502, sold for $260,000 + gst, Aileen Wu
Waldorf Bankside, 8 Bankside St, unit 10E, sold for $261,500, Judi & Michelle Yurak
Tetra House, 85 Wakefield St, unit 508, sold for $265,000, James Mairs
Focus on Anzac, 99 Anzac Avenue, unit 3H, passed in at $460,000, Ryan Bridgman & Mitch Agnew
Grey Lynn, Méditerranée, 10 Crummer Rd, unit 1A, sold for $400,500, Leo Zhu
Westmount, 23 Upper Queen St, unit 1A, passed in at $350,000, Damian Piggin, Daniel Horrobin & Simon Harrison
Eden Terrace, Memphis, 9 Charlotte St, unit GA, sold for $210,000, James Mairs
Uptown Apartments, 14 Upper Queen St, unit 6A, passed in after one bid at $380,000, vendor indication at $400,000, Krister Samuel

14 “intensive living” units, 2 sections & a showroom sell at Barfoots

Of the 32 “intensive living” properties on yesterday’s auction list, 12 were sold at the auction, one prior and one post.

2 sections targeted for their land were sold, one on Point View Drive above Flat Bush and the other in Mt Roskilll, and a showroom/warehouse property in New Lynn was sold. Auction results:

Tower Hill, 1 Emily Place, unit 11D, one-bedroom apartment, sold for $623,000, Livia Li & Alan Guo
Remuera, 16 Belmont Terrace, unit 5, one-bedroom apartment, sold for $434,000, Sarah Garlick & Estee Zeng
Lorne St Lofts, 4 Lorne St, unit 2G, one-bedroom apartment, sold for $442,500, Rita Herceg & Alastair Brown
207 Federal St, unit 406, passed in, 2-bedroom apartment, Stephen Shin & Yasu Ka
Parnell, 26B Takutai St, sold for $1.4 million, Silvia Poletti
Harbour Green, 11 Union St, unit 807, 2-bedroom apartment, no bid, Livia Li & Alan Guo
Glendowie, 43 Karaka Park Place, cross-lease, passed in, Grant Marshall
Glendowie, 123 Riddell Rd, unit 3, cross-lease unit, sold for $710,000, Margot Torrance
St Heliers, 91 Long Drive, unit 2, cross-lease unit, no bid, Helen Clelland
Parnell, 22 Windsor St, cross-lease, passed in, Jill Jackson
Hobson Gardens, 205 Hobson St, unit 8H, apartment, auction postponed, Stephen Shin & Yasu Ka
Meridian, 11 Howe St, unit 1F, studio, no bid, Stephen & Leo Shin
Waldorf Celestion, 19 Anzac Avenue, unit 1305, apartment, no bid, Jason Buckwell
Silo Apartments, 23 Emily Place, unit 9J, studio, no bid, Annie Xu & Sean Zhang
Fiore, 152 Hobson St, unit 408, apartment, sold prior, Stephen Shin & Yasu Ka
St Johns, 6 Lush Avenue, unit 5, cross-lease unit, passed in, Mike Dolan
Mt Wellington, 11 Burt Rd, unit 2, cross-lease unit, no bid, Jane Wang & Dragon Zhou
Grey Lynn, 199 Surrey Crescent, unit 504, apartment, sold for $910,000, Mike Dolan
Meadowbank, 44 Hawkins St, cross-lease, sold for $900,000, Maree Church
Mt Albert, 55 Sainsbury Rd, unit 5, withdrawn from auction, Duane Mullooly
St Heliers, 20B McArthur Avenue, cross-lease, no bid, Sharlene Huang
Mt Wellington, 172 Ireland Rd, cross-lease, no bid, Mike Dolan
Mt Wellington, 12 Motu Place, unit 1, sold for $610,000, Alex Wu & Ben Feng
Avondale, 316 Blockhouse Bay Rd, 9 units, sold for $2.32 million, Sue Allan & Aken Yuan
Mt Eden, 22 Normanby Rd, unit 44, apartment, sold for $662,000, Ryan Harding & Matt O’Rourke
Grey Lynn, 29 Scanlan St, unit M2, apartment, sold for $615,000, Neil Dayal & Louise Stringer
Onehunga, 10 Inkerman St, unit 2, sold for $635,000, Dennis Law
Mt Eden, 101 Balmoral Rd, unit 3, passed in, Alex Yang
Grey Lynn, Turing building, 2 Ariki St, unit GO7, apartment, no bid, Thornton & Felicity Scott
Epsom, 116 The Drive or 41 Empire Rd, unit 2 either way, withdrawn from auction, Robert Thompson
Remuera, 90 Remuera Rd, unit 18, apartment, sold post-auction, Rick Thevenard & Leonie Stabler
Remuera, 90 Remuera Rd, unit 16, apartment, passed in, Rick Thevenard & Leonie Stabler

Land sales:

East Tamaki, 67 Point View Drive, lot 1, 800m² section sold for $1.005 million, Robben Li & Peter Young
Mt Roskill, 14 Invermay Avenue, 1930s bungalow on 828m² section, sold for $1.54 million, Repeka Lelaulu

Commercial:

New Lynn, 26 Portage Rd, unit 1, sold for $975,000, Neil Wooldridge & Peter Jeromson

4 apartments & a farm sell at Bayleys

4 of the 7 apartments auctioned at Bayleys yesterday were sold under the hammer.

A Kaukapakapa farm with a range of potential conversions, including subdivision, was also sold. Auction results:

Grey Lynn, 45 Millais St, 3 flats in bungalow, sold for $1.5 million, Blair Haddow
Hillsborough, 80 Carlton St, cross-lease, passed in, Chris Reeves
Ellerslie, 32 Michaels Avenue, flat 2, cross-lease, sold for $495,000, Lisa Smyth & Helen Byford
Stamford Residences, 26 Albert St, unit 1209, apartment, no bid, Blair Haddow
Matakatia, 64A Matakatia Parade, cross-lease, passed in at $1.01 million, Sue & Charles Donoghue
Parnell, Stonemasons, 27 Falcon St, unit 2B, apartment, sold for $565,000, Chris Reeves
Scene 1, 2 Beach Rd, unit 611, leasehold apartment, sold for $95,000 at mortgagee auction, Tony Bayley

Rural:

Kaukapakapa, 158 Hellyer Rd, 400ha farm, passed in at $4.2 million, Karen Asquith & Graeme Mann

All 4 sell at City Sales auction

All 4 apartments auctioned at City Sales yesterday were sold under the hammer. Auction results:

Takapuna, Spencer on Byron, 9-17 Byron Avenue, unit 312, sold for $216,000 at mortgagee auction, Gabrielle Hoffmann
Sapphire, 76 Wakefield St, unit 303, sold for $271,500, Chris Bell
The Quadrant, 10 Waterloo Quadrant, unit 1112, sold for $425,000, Maryanne Wong
Eden Terrace, 3 Ngahura St, unit 15, sold for $445,000, Jake Hayward & Iona Rodrigues

Goodman settles 2 Addington sales

Goodman Property Trust’s manager, Goodman (NZ) Ltd, confirmed yesterday that the $33.2 million sale of the amenity & IAG buildings at 12 & 14 Show Place in Addington, Christchurch, to local investors has been settled.

PFI pleased to exit Cavendish Drive property

Property For Industry Ltd said yesterday its sale of a non-core property at 85 Cavendish Drive, Manukau, for a gross $10 million was due to settle on 31 March 2016. General manager Simon Woodhams said the sale, to a neighbouring investor at a Colliers auction last week, concluded a long-term strategy to sell this property, and it was above the December 2014 book value of $8.65 million.

Earlier story:
18 November 2015: Cavendish Drive property sells $750,000 above June book value

Attribution: Council, auctions, company releases.

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Cavendish Drive property sells $750,000 above June book value

NZX-listed Property For Industry Ltd sold a Manukau commercial property to a local investor for $10 million at Colliers’ auction today. The property was in PFI’s books at 30 June with an independent valuation of $9.25 million.

South

Manukau

85 Cavendish Drive:
Features: 11,549m² site, 90.9m road frontage, 3893m² net lettable area + canopies, weighted average lease term 6.7 years, 3 tenants (Big Save Furniture, Reece Plumbing & Smart Marine), over 150 parking spaces
Rent: $714,436/year net + gst, outgoings $96,497/year
Outcome: sold for $10 million at a 7.14% yield
Agents: Gareth Fraser, Charlie Oscroft, Leroy Wolland & Jeremy Barnett

Attribution: Auction, PFI interim report.

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Propbd on Q Th20Aug15 – Auctions at Barfoots, Ray White, City Sales, Colliers, Bayleys; Augusta exits 2, PFI settles ahead of rights offer

2 commercial sales at Barfoot auction
8 units out of 10 sell at Ray White auction
16 units sell at Barfoots
All 3 units sell at City Sales
Apollo sale, Kingsland sites passed in
Freemans Bay penthouse sells, Paihia section & Unitec accommodation passed in
Augusta settles one sale, conditional on another
PFI settles Penrose purchase ahead of rights offer

3.50pm:
2 commercial sales at Barfoot auction

2 commercial properties were sold at Barfoot & Thompson’s auction today out of 5 offered. The auction of another property was postponed. Auction results:

East Tamaki, 39A & 39B Lady Ruby Drive, sold for $1.83 million, Paul Vermaak
Northcote, 33 Woodside Avenue, sold for $1.15 million, Tim Bibby & Gary Seekup
Airport Oaks, 50 Andrew Baxter Drive, passed in, Kian Ormond & David Sylvester
Papakura, 89 O’Shannessey St, no bid, David Sylvester
Manukau, 49 Plunket Avenue, passed in, Jesh Jaskiewicz
CBD, 56 Airedale St, auction postponed, Wayne Muir & Kim Loo

8 units out of 10 sell at Ray White auction

8 of the 10 apartments auctioned at Ray White City Apartments today were sold under the hammer, and the other 2 went straight to multi-auction wit sales expected. Auction results:

Parklane, 68 Greys Avenue, unit 3C, sold for $1.32 million, Daniel Horrobin & Damian Piggin
Avenue 105, 105 Anzac Avenue, unit 4C, sold for $750,000, Ryan Bridgman & Mitch Agnew
Zest, 72 Nelson St, unit 112, sold for $290,000, Krister Samuel
Harvard on Hobson, 147 Hobson St, unit 4D, sold for $345,000, May Ma & Mark Li
Emily, 22 Emily Place, unit 4F, top offer $355,000, vendor put sale price at $475,000, passed in, Donald Gibbs & Liam Kyle
Alpha, 17 Vogel Lane, unit 909, sold for $435,000, Krister Samuel
Altitude, 34 Kingston St, unit 13L, passed in at $237,000, May Ma & Mark Li
Fiore, 152 Hobson St, unit 406, sold for $339,000, Krister Samuel
The Quadrant, 10 Waterloo Quadrant, unit 2107, sold for $463,000, James Mairs
Oakwood Hall, 81 Wakefield St, unit 5D, sold for $238,000, May Ma & Mark Li

16 units sell at Barfoots

16 cbd apartments and suburban brick-&-tile units, townhouses & terraces were sold under the hammer at Barfoot & Thompson’s auction yesterday. A number were sold pre-auction (not listed here). Auction results:

Eden Terrace, 8 Takau St, sold for $993,000, 5-bedroom rental villa, Jill Jackson & Emma John
Stonefields, 17 Guyon St, sold for $838,000, Nicole Hou & Joy Chen
Remuera, 38 Richard Farrell Avenue, unit 1, sold for $760,000, Sam Bowen
St Heliers, 6 Hanene St, unit 3, sold for $2.61 million, Paul Neshausen
Stonefields, 52 Bluegrey Avenue, sold for $1.25 million, Kelly Midwood
St Heliers, 5 Brookfield St, unit 5, passed in, Paul Neshausen
Panmure, 14 Cleary Rd, unit 5, no bid, Peter Wu
CBD, 1 Emily Place, unit 13D, sold for $648,000, Sarah Garlick & Estee Zheng
CBD, Kingsbridge, 72 Wellesley St West, unit 2F, sold for $626,000, Rita Herceg & Alex Allan
CBD, Heritage Farmers, 35 Hobson St, unit 421, sold for $390,000, Aaron Cook & Betty Shao
CBD, 1 Emily Place, unit 4F, sold for $871,000, Livia Li
Epsom, 21 Kipling Avenue, unit 5, sold for $580,000, Sam Qin
CBD, The Beach, 85 Beach Rd, unit 509, sold for $290,000, Aaron Cook & Betty Shao
CBD, Longview, 6 Whitaker Place, unit 6D, passed in, Johnson Chen
CBD, First Imperial, 125A Hobson St, unit 10A, sold for $235,000, Wendy Feng & Jack Li
CBD, Zest, 72 Nelson St, unit 1509, sold for $377,500, Annie Xu
Bayview, 216 Manuka Rd, unit 23, no bid, Bret Glazer
CBD, HarbourCity, 16 Gore St, unit 26I, passed in, Jason Buckwell
Pakuranga, 133 Ennis Avenue, unit 8, sold for $564,000, Kian Ormond & Juan Xin
Mt Albert, 11A Alexis Avenue, unit 1, sold for $890,000, John Gray
Mt Albert, 7 Amandale Avenue, unit 3, passed in, Joey Zhuang
New Lynn, 123 Hutchinson Avenue, units 1 & 2, sold for $1.06 million, Clara Wu & Shirley Zhong
New Lynn, 17 Crown Lynn Place, unit 4H, passed in, Aken Yuan & Michelle Zhou

All 3 units sell at City Sales

All 3 apartments auctioned at City Sales yesterday were sold under the hammer. Auction results:

Tetra House, 85 Wakefield St, unit 1004, sold for $338,000, Maryanne Wong
Kiwi on Queen, 421 Queen St, unit 902, sold for $380,000, Habeeb Urrahman
The Docks, 8 Dockside Lane, unit 724, leasehold, sold for $270,000, James Li

Apollo sale, Kingsland sites passed in

A standalone Apollo Drive building in Mairangi Bay, in 2 units, was sold at Colliers International’s auction yesterday. 2 sections in Kingsland, one with a local dairy on it, were passed in. Auction results:

Mairangi Bay, 63 Apollo Drive, units A1 & A3, sold for $3.145 million, Craig Newth & Jonathan Lynch
Kingsland, 520 New North Rd, passed in at vendor bid of $1.5 million, Jonathan Lynch & Peter Kermode
Kingsland, 518 New North Rd, passed in at $1.06 million, Jonathan Lynch & Peter Kermode

Freemans Bay penthouse sells, Paihia section & Unitec accommodation passed in

A 2-level Freemans Bay penthouse was sold at Bayleys’ auction yesterday. A commercially zoned Paihia waterfront property and a managed student accommodation unit at Unitec were passed in. Auction results:

Freemans Bay, Meridian, 11 Howe St, unit 9G, sold prior for $602,000, Julie Prince & Diane Jackson
Paihia, 30 Marsden Rd, passed in at $1 million, Chester Rendell & Esmae Farrington
Point Chevalier, 125 Carrington Rd, unit 3, passed in at $75,000, Andrew Bond

Augusta settles one sale, conditional on another

NZX-listed Augusta Capital Ltd has sold 7 City Rd, behind the Langham Hotel at the top of the Auckland cbd, to a Japanese investor for $and has also reached an $87 million conditional sale agreement on the Finance Centre.

  • More details to come later today.

PFI settles Penrose purchase ahead of rights offer

Property For Industry Ltd said today it had settled the $18.4 million purchase of a portfolio of 5 industrial properties on Hugo Johnston Drive & Autumn Place, Penrose. Those properties plus one at 232 Cavendish Drive, Manukau, cost PFI $46.9 million.

The company aims to raise $49.5 million through a pro rata renounceable 1:12 rights offer at $1.44/share, details to be posted to shareholders tomorrow.

The equity-raising is to repay bank debt and reduce gearing related to the acquisition & development programme.

The company announced a $39.4 million development programme on 11 August – $26.5 million committed to pre-leased developments at 124 Hewletts Rd, Mt Maunganui, and $12.9 million planned on Auckland expansion land.

Attribution: Auctions, company releases.

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PFI supports growth programme with rights offer

Property For Industry Ltd produced what chairman Peter Masfen called a robust half-year result from its industrial property portfolio, and pointed to an $86 million growth programme supported by a rights offer. The company also put in an interim credit arrangement to manage cashflows.

After allowing for non-operating income & expenses and deferred tax, PFI recorded profit after tax of $36.4 million ($14.4 million) or 8.85c/share (3.5c).

Operating expenses rose $2.3 million (17.8%) to $15.3 million due to increases in management fees (up $1.7 million) and interest expense & bank fees (up $600,000). The effective current tax rate decreased to 18.8% (20.6% last year) as increased operating expenses reduced taxable income.

The NZX-listed company’s half-year operating revenue of $32.1 million was in line with last year, as increases due to acquisitions & rent reviews were offset by decreases due to disposals & vacancy. The company expects operating revenues in the second half to be about 5% higher, as recent acquisitions & developments begin to contribute, or contribute further.

The 1:12 offer of 34.36 million shares at $1.44/share is intended to raise $49.5 million, with no provision for oversubscriptions, and is fully underwritten by Forsyth Barr Group Ltd. Proceeds of the rights offer will be used to repay bank debt and reduce gearing related to the acquisition & development programme.

Mr Masfen said: “Post-acquisition, development & completion of the rights offer, PFI is expecting pro forma year-end gearing of around 35%, 2015 full-year earnings/share of at least 7.35c, and an enhanced earnings growth profile driven in part by future development activity.”

The company’s gearing at 30 June was 36.8%, up from 35.8% at 31 December. The interest cover ratio reduced slightly to 2.8 times.

Mr Masfen also announced an interim measure for managing cashflows: “In order to manage the timing of cashflows associated with the acquisitions, developments & rights offer, PFI has today entered into a $25 million institutional credit agreement with ANZ. The facility has an initial expiry date of 6 months, with an option to extend the expiry to 12 months. The facility ranks alongside PFI’s existing syndicated bank loan facility, and PFI does not expect to retain this facility at the completion of the rights offer.”

Half-year highights:

  • Profit after tax $36.4 million or 8.85c/share
  • Distributable profit 3.64c/share
  • Second quarter cash dividend of 1.75c/share, total cash dividends for the first half 3.50c/share, in line with last year
  • $375 million bank loan facility refinanced on competitive terms
  • $25.6 million (2.8%) portfolio revaluation uplift to $930 million, contributing to a 4% (5.2c) increase in net tangible assets to 135.4c/share
  • 38% of contract rent varied, leased or reviewed
  • Occupancy improved to 100%, weighted average lease term stable at 5.26 years, only 3.4% of contract rent due to expire during the rest of 2015.

PFI has committed to a series of value-enhancing acquisition & development opportunities to drive growth:

  • $18.4 million acquisition of 232 Cavendish Drive, Manukau
  • $28.5 million acquisition of a portfolio of 5 properties in Penrose, to be completed in the third quarter
  • $26.5 million committed to preleased developments at 124 Hewletts Rd, Mt Maunganui
  • $12.9 million of development planned on Auckland expansion land.

Distributable profit fell 4.2% (0.16c/share) to 3.64c/share. The second-quarter cash dividend of 1.75c/share will have imputation credits of 0.4590c/share attached and a supplementary dividend of 0.2083c/share for non-resident shareholders.

The dividend reinvestment scheme has been suspended for the June quarter because it would coincide with the rights offer. Mr Masfen said the board would continue to assess whether to operate or suspend the scheme on a quarter-by-quarter basis as the company’s capital needs dictated, but expected to reinstate it for the September quarter.

Following the rights offer, PFI continues to expect to meet the earnings guidance announced at the time of the 2014 annual results, but with materially lower gearing and enhanced growth prospects, driven in part by a number of the new development opportunities announced today. For the 2015 financial period, PFI expects distributable profit to be at least 7.35c/share and cash dividends to be 7.30c/share, subject to economic & market conditions.

Attribution: Company release.

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Propbd on Q T5May15 – Esanda for sale, inspections cancellation charge, Warehouse bond, PFI resumes DRS & ups loan facility

ANZ to sell Esanda dealer finance business
Council votes in fee for last-minute cancellation of building inspections
Warehouse considers new bond offer
PFI resumes DRS scheme and increases loan facility

ANZ to sell Esanda dealer finance business

ANZ Banking Group Ltd said today it intends to sell its Esanda dealer finance business. The bank expects to issue an information memorandum to potential bidders this month.

The sale will include about $A8.3 billion in lending assets comprising point-of-sale finance, bailment facilities & other Esanda-branded finance offered to vehicle dealers.

The bank’s chief executive for Australia, Mark Whelan, said: “The sale of the Esanda dealer finance business is part of a broader group priority to actively manage our portfolio of businesses to ensure we use capital efficiently, as well as a focus on ANZ-branded products.”

He said the bank would continue to provide asset finance for its customers under the ANZ brand, and the sale didn’t include the ANZ commercial broker, commercial asset finance or direct to consumer asset finance businesses.

ANZ bought the ASX-listed English, Scottish & Australian Bank Ltd in 1970 but chose to use this one piece of ES&A without rebranding it.

Council votes in fee for last-minute cancellation of building inspections

Auckland Council’s regulatory & bylaws committee approved setting a $135 fee (including gst) yesterday for customers for a building inspection who cancel on the day of inspection.

A staff report said: “Delivering an inspection service within 48 hours is challenging. A principal reason is the large number of inspection bookings which are cancelled on the day of the inspection. Same-day cancellations are currently running at 10% of the total number of inspection visits booked (regionally 700-800/day)…. The high level of cancellations is driven by builders block booking inspections in advance. The end result of this is that other customers are unable to book at the day/time they wish to have their inspection.”

The report said the proposal had been discussed extensively with industry representatives, including Master Builders & Certified Builders, and had been met with strong support as it would enable the council to provide inspections within 48 hours of request from well organised customers.

Warehouse considers new bond offer

The Warehouse Group Ltd said yesterday it was considering making an offer of new 5-year unsecured, unsubordinated, fixed-rate bonds to refinance its $100 million senior bond maturing on 15 June and for general corporate purposes.

The company will seek up to $100 million, with oversubscriptions taking the total to $125 million in a general offer to retail & institutional investors and an exchange offer to holders of the maturing bonds.

PFI resumes DRS scheme and increases loan facility

Property For Industry Ltd announced a first-quarter cash dividend of 1.75c/share yesterday, with imputation credits of 0.4334c/share attached and a supplementary dividend of 0.1967c/share for non-resident shareholders. It will also reinstate the dividend reinvestment scheme, which hasn’t been applied since the May 2012 dividend.

The company’s guidance for the December 2015 financial year is unchanged – distributable profit 7.35c/share, cash dividends 7.30c/share.

Joint general managers Nick Cobham & Simon Woodhams said PFI had secured a $25 million increase in its syndicated bank loan facility to $375 million and refinanced on competitive terms. The refinanced facility, provided by existing lenders ANZ Banking Group, Bank of NZ, Commonwealth Bank of Australia & Westpac, comprises 2 $187.5 million tranches, one committed for 4 years and the other for 5.

From an average term to expiry of 3.8 years and weighted average cost of debt of 5.96% at 31 December 2014, the average term to expiry has extended to 4½ years and the average cost of debt is 6.08%.

Attribution: Council & company releases.

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