133 Roscommon Rd, Wiri.

Argosy sells in Hastings & Palmerston North, buys Turners site

Argosy Property Ltd has sold 2 properties in Hastings & Palmerston North, reducing assets outside its core Auckland & Wellington markets to 3, and it’s added an industrial yard in Wiri (outlined in picture above) to the Auckland portfolio.

Transactions:

  • Hastings, 1478 Omahu Rd, sold for $10.2 million, a 12% premium over book value, settlement scheduled for March 2019
  • Palmerston North, 31 El Prado Drive, sold for $35.5 million, a 25% premium over book value, settlement scheduled for December
  • Wiri, 133 Roscommon Rd, 15,838m² industrial yard leased to NZX-listed Turners Automotive Group Ltd, acquired in September for $8.6 million; the 15-year lease provides a holding return of $430,000/year net + gst (5% yield) with fixed reviews of 2.5%/year and a market review in year 6.

Argosy chief executive Peter Mence said of the Turners deal: “We are pleased to have commenced what we envisage to be a mutually beneficial long-term relationship with an organisation that has a significant real estate footprint across New Zealand.”

Turners uses this property to store damaged & end-of-life cars. It also owns a large site at 160 Roscommon Rd, used for trucks & machinery.

Attribution: Argosy release.

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