Sharechat Logo

Precinct Properties to sell half-stake in Auckland's ANZ Centre for $181 mln

Friday 29th June 2018

Text too small?

Precinct Properties New Zealand has signed a binding deal to sell its 50 percent stake in ANZ Centre in downtown Auckland to a fund managed by US investment firm Invesco for $181 million, in line with the building's current valuation.

Auckland-based Precinct attracted strong interest from a number of parties and had previously said indicative bids were north of the $324 million valuation as at June 30, 2017. The commercial property investor today said the sale price was in line with the 2018 valuation.

"The successful sale of a 50 percent interest in ANZ Centre further demonstrates our active management approach," chief executive Scott Pritchard said in a statement. "It is in line with our business strategy and enables us to recycle capital out of assets like ANZ Centre into higher yielding development opportunities."

Precinct specialises in central city real estate, and is focusing on its Commercial Bay and Wynyard Quarter developments in Auckland's CBD and upgrading the Bowen Campus in Wellington. The portfolio of 13 buildings and the development sites were given a draft valuation of $2.5 billion subject to audit, including a $202 million revaluation gain.

Pritchard said if that valuation is affirmed, the building sale will cut Precinct's gearing ratio to 19.5 percent, down from 25.5 percent as at March 31.

Atlanta, US-based Invesco manages US$973 billion of assets worldwide. The deal is subject to Overseas Investment Office approval.

Precinct shares last traded at $1.37, and have edged up 0.7 percent so far this year, lagging behind a 7.2 percent gain on the S&P/NZX 50 index.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares fall to 5-week low as trade tensions spook investors; A2 drops
NZ dollar benefiting from weaker greenback as markets fret about global growth
PM mum on Kiwibuild head Stephen Barclay's status
Mataura Valley begins infant formula trials
CEO pay and non-GAAP reporting are linked, study shows
ACC levy cuts worth $50M a year to business, says Ardern
Unfair business practices on borrowed time
New director of Vital Healthcare’s manager unfazed by fire-at-will clause
QMS pulls out A$35M from NZ unit in MediaWorks merger
Take care to avoid

IRG See IRG research reports