PFI bails from Bowden

Friday 19th January 2001

By Campbell McIlroy

Property For Industry has sold its Bowden Rd property in Mt Wellington, Auckland, for $10.03 million, having bought it for $7.96 million in 1996.

With a recent $1.93 million expansion for tenant Fletcher Aluminium, the sale represents a return of 11.53% before company overheads, tax and debt.

The sale is no surprise as late last year general manager Peter Alexander signalled a portfolio rationalisation would be necessary to fund 2000's biggest industrial deal - the acquisition of eight properties in Westfield, Mt Wellington, for $23.15 million.

A statement from PFI said it was also carrying out a $3.7 million expansion of its Cardinal Freight Distribution property at 62 Naples Rd, East Tamaki, and had other opportunities under consideration.

Mr Alexander said the property had been a good investment for PFI and had outperformed the Property Council's benchmark industrial property index.

The index showed an annualised total return for the four years to June 2000 of 11.16% compared with the 11.53% achieved by PFI.

The sale is unconditional and settlement is due to take place on March 5.

Mr Alexander said it was likely PFI would look to dispose of two or three more properties this year, although he was not willing to specify which properties could be sold.

As for possible acquisitions in the coming year, he said the company was always looking for opportunities that would enhance shareholder return.

But he would not speculate about any specific opportunities being actively pursued by the company.

PFI's share price remained stable at 81c after the sale was announced on Wednesday.

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