LynnMall shopping centre sold

Thursday 2nd December 2010

Kiwi Income Property Trust is buying LynnMall Shopping Centre in Auckland from AMP Capital Property Portfolio for $174 million.

The 30,661 sq m centre was 99.6 percent occupied, trust manager Kiwi Income Properties Ltd said today.

LynnMall was anchored by a Farmers department store and Countdown supermarket, with "mini-major" tenants JB Hi-Fi, Number One Shoes, Noel Leeming and Postie Plus. Its specialty component included 103 shops, 11 foodcourt units and nine kiosks.

The deal would be funded out of existing bank debt facilities. Following the acquisition, the trust's net bank debt gearing ratio would increase by 6% to about 31%, remaining within the trust deed limit of 40%.

Chris Gudgeon, chief executive of the trust manager, said the trust had a strong balance sheet position.

Being able to invest counter-cyclically into an Auckland regional shopping centre was a valuable opportunity, particularly given that the asset class was tightly held.

Recent road and public transport upgrades, including completion of an integrated rail and bus transport centre next to LynnMall, had increased accessibility to the centre, Mr Gudgeon said.

Future road works would improve that further.

Settlement, subject to Overseas Investment Office approval, is due on December 31.

NZPA

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