Stride Property Group chief executive Philip Littlewood delivered a proposal to the company’s annual meeting in Auckland yesterday that was a year old, with little progress shown between-times.
In his address to the company’s latest annual meeting, Mr Littlewood said the group was “targeting establishing a new product this financial year, expected to be in the industrial sector. In line with Stride’s strategy, this product will:
- be a sector-specific investment management product, with an enduring structure
- grow Stride’s investment management business
- leverage Stride’s existing investment management capabilities
- continue to provide Stride with a significant & long-term holding in the sector.”
Mr Littlewood said the focus would be to “establish a group of commercial property funds to provide growth in our investment management business and continue to review opportunities in markets adjacent to core commercial property sectors”.
He said that, 12 months on from establishing an in-house development team, “Stride has a growing pipeline of development activity, with the team currently managing over $200 million of development projects across our various products. These include for Stride Property Ltd:
- The large industrial project at Springs Rd, East Tamaki, where we have partnered with Waste Management to develop a new head office & logistical facilities site, with completion expected towards the end of 2019
- The development at the recently acquired property at The Concourse, Henderson
- A $5 million expansion project of the Briscoes & Rebel Sport premises at the Bay Central shopping centre in Tauranga, with new 10-year leases to commence post-development.
- Our Bunnings-tenanted property has also been earmarked for a $6 million expansion; however, we note that these works are currently on pause at the request of the tenant, while Stride & the tenant review alternative options for the expansion of the site.
For Diversified NZ Property Trust:
- We have the rebuild project at Queensgate continuing, as well as various other asset management & property upgrade works, which in aggregate total over $100 million.
Stride Investment Management Ltd manages 3 property portfolios – Stride Property Ltd, Investore Property Ltd & Diversified NZ Property Trust.
The new product:
“We are targeting establishing a new Stride Investment Management-managed product during this financial year. We expect this will be in the industrial sector, as this sector has been a significant focus for Stride recently.
“We have successfully grown our industrial portfolio to $263 million as at 31 March 2019, with a further $100 million of property development underway in this sector. That would take our committed industrial portfolio value to over $360 million, representing an increase in value of almost $150 million since March 2018. In our view, this growth has put Stride into a position to establish a Stride Investment Management-managed product in this sector.”
12 September 2018: Stride outlines plans for commercial property funds
Attribution: Annual meeting speechnotes.