Argosy Property buys Auckland office building for $42M

Monday 24th August 2015

Argosy Property, the property investor which has been diversifying away from malls and retail, bought an Auckland office property for $42 million.

The five-level building at 8 Grafton St has a net lettable area of 8,125 square metres and is fully leased to 11 tenants with a weighted average lease term of about five years, equating to an initial passing yield of 7 percent, the Auckland based company said in a statement.

Argosy said it will fund the acquisition from its current bank facilities and the further divestment of non-core properties over the next year. The company said its gearing is expected to remain within its 35-to-40 percent target range after the acquisition and the previously announced sale of four other properties for $20.2 million.

Its shares fell 1.3 percent to $1.125, and have gained 5.6 percent so far this year.

BusinessDesk.co.nz

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