Kiwi Property sells Hamilton shopping centre for $46.7 mln

Wednesday 23rd December 2015

Kiwi Property Group, the country's biggest listed property investor by market value, has sold the southern part of its recently developed downtown Hamilton shopping centre to an undisclosed local buyer for $46.7 million, a 3 percent discount to its book value.

The sale of Centre Place South is conditional on the issue of updated unit titles and Hamilton City Council consent to transfer two ground leases, and is expected to be completed in the middle of 2016, the Auckland-based company said in a statement. Kiwi Property will retain Centre Place North and continue to manage the entire centre. The proceeds will go towards repaying debt.

"Centre Place South was redeveloped in 2013 and has been trading well since completion," chief executive Chris Gudgeon said. "This was an opportune time to take the centre to market and capitalise on the redevelopment."

Last month Kiwi Property reported a 5.2 percent gain in first-half distributable earnings as lower interest costs made up for a drop in rental income.

The shares last traded at $1.345, and have gained 9.2 percent this year.

BusinessDesk.co.nz

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