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Argosy buys Wiri property for $38 mln

Monday 16th September 2013

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 Argosy Property, which raised $86.9 million last month, has bought a new warehouse in South Auckland's Wiri for $38 million.

The Auckland-based property investor's new acquisition will settle in December, and have a 15-year lease with Cardinal Logistics from that date, the company said in a statement. The purchase will take its debt-to-asset ratio to 35 percent, at the lower end of its 35 to 40 percent target and within its 50 percent debt covenant.

Argosy raised $86.9 million in a rights issue and placement last month to repay bank debt after it bought two buildings in Wellington.

The new acquisition lifts Argosy's weighting to Auckland's industrial property sector, and will form part of its core portfolio, it said.

The shares were unchanged at 94.5 cents, and have gained 5 percent this year.

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