Kiwi swaps props with Macquarie

By Chris Hutching

Friday 4th June 2004

Kiwi Income Property Trust has sold HP House on Auckland's Viaduct Harbour Avenue to Macquarie Goodman Property Trust for $25.8 million, a small surplus to book value.

The sale continues Kiwi's strategy of "recycling non-strategic assets" but comes after Kiwi recently agreed to buy Wellington's Unisys House from Macquarie.

"In one sense it's like any market where you have a willing buyer and seller but on a strategic level we're more focused on business park-type investments and industrial property so it suits our portfolio, whereas Kiwi Income has talked about its focus being on office towers and retail properties, Macquarie Goodman Property Trust chief executive John Dakin said of the recent sales. "It depends on your strategic focus."

The property is located within the Viaduct Basin development area on a leasehold site. The seven-storey building was built in 2000 and has a total lettable area of 7370sq m, with 70 parking spaces.

The chief executive of the manager of Kiwi Income Property Trust, Angus McNaughton, said the price was ahead of the March 31 book value of $25.35 million.

He added that the sale of the property continues the trust's strategy of recycling non-strategic assets to invest in assets that will better diversify and strengthen the trust's tenant mix and income profile.

Apart from buying Unisys House from Macquarie, Kiwi also recently bought NGC House. Both buildings are located on The Terrace, Wellington.

Kiwi will use the proceeds from the sale, due to be settled at the end of September, to reduce debt. HP House is 51.1% leased to Bayleys Real Estate, with the balance leased to Hewlett-Packard NZ.

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