Stride Property Group has entered into an unconditional agreement to acquire a 4ha property at 16 Wickham St, Hamilton, for $10 million. The company expects to settle on 1 April.
1.3ha is tenanted. On the 2.7ha balance, Stride has agreed to redevelop a resource recovery park for Waste Management (NZ) Ltd.
Stride intends to shift ownership of this property plus 2 others occupied by Waste Management into the Industre Property joint venture, between Stride Property Ltd & a group of international institutional investors through a special purpose vehicle, and advised by JP Morgan Asset Management.
Stride is still awaiting Overseas Investment Office approval of the joint venture.
Stride chief executive Philip Littlewood said on Friday the company estimated the total development cost (excluding land costs) of the Hamilton property at $15 million, and said the property (including currently tenanted premises & the Waste Management development when completed) was expected to deliver a yield on cost of about 7%.
He expects the development to be completed by December, when Waste Management will take a 25-year lease of the facility.
The other 2 properties to go into the Industre joint venture are Waste Management’s new head office on East Tamaki Rd, which Stride completed in December, and an industrial facility at Selwood Rd, Henderson.
5 September 2019: Stride creates new portfolio owner Industre in partnership with JP Morgan
30 August 2019: Stride talks up new fund again
12 September 2018: Stride outlines plans for commercial property funds
6 May 2018: Stride’s Springs Rd redevelopment for Waste Management goes unconditional
Attribution: Company release.