Kiwi Property Group Ltd has agreed to sell the North City Shopping Centre in Porirua to the Angaet Group of Adelaide for $100 million – $12.4 million short of book value. The transaction is due to settle in July.
It’s Angaet’s second New Zealand purchase following its acquisition of the WestCity mall in Henderson from the manager of Westfield Group’s New Zealand malls, Scentre (NZ) Ltd, settled last July.
In both cases, mall management has moved from the big portfolio owners and into the hands of real estate company Colliers.
Kiwi chief executive Chris Gudgeon said on Wednesday: “North City had been identified for sale as part of our capital recycling programme designed to fund current investment priorities. Proceeds from the sale will be used to pay down bank debt and provide further balance sheet flexibility.”
North City was on Kiwi’s books (at September 2017) at $112.4 million, with a cap rate of 7.63%. Kiwi has owned it since 1993, the year the company’s forerunner, the Kiwi Income Property Trust, was floated on the NZX.
The DiMauro family, under the leadership of Nick DiMauro & his son Michael, owns the whole of Angaet’s portfolio, which includes 25 shopping centres around Australia.
Nick DiMauro said yesterday New Zealand was an attractive investment location, and North City was a vibrant asset. The 3-level regional shopping centre has 98 tenants in a net lettable area of 25,439m² and 1102 parking spaces, and is anchored by Kmart, Farmers & a Reading Cinemas complex. It has 68 specialty retail tenants, 11 kiosks, 11 foodcourt tenants, and 8 office suites on the third floor.
The mall at 2 Titahi Bay Rd, Porirua, was built in 1990 and refurbished & extended in 1997 & 2004.
Attribution: Kiwi & Colliers releases.