NZX-listed Property for Industry Ltd has sold its mixed-use property at 229 Dairy Flat Highway in Albany Village to a private investor for $33 million, $5 million above its most recent valuation, last December.
PFI had owned the property since 2007. Chief executive Simon Woodhams said on Wednesday: “The divestment follows the completion of a number of asset management initiatives at the property and is the first of a series of planned divestments of PFI’s non-industrial properties.
“In keeping with PFI’s strategy, the funds from this sale will be reinvested into quality industrial properties in sought-after areas & value-add strategies within the existing portfolio.”
Settlement is scheduled for early December.
Colliers North Shore agents Shoneet Chand & Matt Prentice, who marketed the property, said the sale reflected strong investor demand for premium North Shore property investments.
Mr Chand said: “This substantial transaction shows there is still huge investor appetite at the top end of the North Shore market. While many of the biggest deals on the North Shore this year have taken place off market, we’re pleased that PFI entrusted us to bring the property to the market via a deadline private treaty campaign.”
The 1.04ha landholding has a net lettable area of 6736.5m², 156 parking spaces and a mainstreet address, though on the map it sits on the backstreet Kell Drive.
The 5 tenants include Massey University’s School of Engineering, the Quest Albany hotel & Auckland Council’s Albany Village library. The leases have a weighted average term of 10 years and the combined net rent was $1,910,165/year.
Auckland Council has prioritised Albany for intensive development and a number of new residential developments are underway.
26 July 2019: PFI puts Albany Village property on market
Attribution: PFI & Colliers releases.