Argosy Property Ltd has settled the sale of a Wellington property and entered into an unconditional agreement to sell the bulk retail centre it owns in St Lukes, Auckland.
The agreed price of $31 million for 7 & 7A Wagener Place, St Lukes, is a 13% premium on its 28 February book value of $27.4 million. Settlement is scheduled for July.
The St Lukes property – across Wagener Place from the Westfield St Lukes mall – has a net lettable area of 7056m². It began trading in 2006 in a converted 1960s industrial building. A new building for The Warehouse was added in 2010.
The sale of 14 Tunnel Grove in Wellington was for $2.825 million.
Argosy chief executive Peter Mence said of the St Lukes deal: “The market for commercial real estate remains attractive for long-term investors divesting real estate. The sale presents an opportunity to reduce our retail exposure in an area where there will be increasing competition. It allows us to keep delivering on our strategy and we will reinvest the proceeds into other brownfield development opportunities across the portfolio.”
Attribution: Company release.