Precinct sells another Wellington building for $76 mln; portfolio value increases

Thursday 25th June 2015

Precinct Properties New Zealand, which raised $174.1 million in March to help fund major developments, sold another property in Wellington's central business district, while saying its latest valuation has bumped up the worth of its broader portfolio.

The Auckland based company agreed to sell its 171 Featherston St building to an undisclosed party for $76 million, which is in line with its latest valuation, it said in a statement. The deal is the latest in a string of asset sales to emphasise its Auckland presence, and has raised about $210 million from the programme. The proceeds of the sale, which is expected to settle next month, will go towards repaying debt.

"Over the past few months we have made significant steps in advancing our long term strategy," chief executive Scott Pritchard said. "Combined with the proceeds of the $174 million entitlement offer completed earlier this year, the company is in a strong position to fund its development opportunities at Downtown Shopping Centre and Wynyard in Auckland and Bowen Campus in Wellington over the coming years."

In February, the company said short term earnings may be hit by efforts to trim debt, but that a higher quality portfolio would deliver strong results over a longer period.

Separately, Precinct said the a revaluation of its investment portfolio increased 3.9 percent to $1.72 billion. Of that, the company's Auckland properties grew 8.3 percent in value, while its Wellington buildings depreciated by 2.1 percent.

Including the valuation gain and asset sale, Precinct's gearing will fall to 14 percent.

The company's shares were unchanged at $1.14, and have declined 3.5 percent this year.

BusinessDesk.co.nz

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