Investore Property Ltd has an unconditional agreement for the sale of its Countdown supermarket in South Dunedin, 10 months after a tender for it closed.
The sale of the property at 323 Andersons Bay Rd is for $19.328 million, representing an initial yield of 6.26% & a 5.6% premium over the $18.3 million valuation in the March accounts. Settlement is scheduled for 1 April 2019.
Philip Littlewood, chief executive of Investore’s manager, Stride Investment Management Ltd, said the Dunedin sale completed the divestment programme Investore announced in November 2017, associated with the purchase of 3 Bunnings-operated properties for $78.5 million in February 2018.
To buy the Bunnings properties, Investore decided to sell this Countdown, another one in Christchurch and the Fresh Choice in Queenstown. Sales of the other 2 were settled in March for $32.6 million.
The South Dunedin Countdown sits on 10,298m² and has a 4071m² floor area. The tender documents showed it was returning $1,225,375/year net + gst and had a 14.7-year weighted average lease term. Even after its sale, Countdown stores still dominate the Investore portfolio. At the March balance date they represented 73% of contract rent.
21 November 2018: Investore lifts rent but profit slips
6 August 2018: Investore launches share buyback
26 March 2018: Investore settles 2 property sales
5 March 2018: Investore sells Hornby supermarket property
2 March 2018: Stride’s 3-property sale to Investore settles
9 February 2018: Investore confirms 3-shop buy from Stride, and signs a sale
13 July 2016: Stride stapled securities & Investore start trading
Attribution: Company release.