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Property for Industry Limited (NZX: PFI) Strategic Avondale Acquisition, Tidal Road Update

Wednesday 23rd December 2020

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Property for Industry Limited is pleased to announce the acquisition of the industrial properties located at 670-680 Rosebank Road in Avondale, Auckland and wishes to provide an update on the industrial properties to be acquired at Tidal Road in Mangere, Auckland.

Strategic Avondale Acquisition

PFI has agreed to acquire the industrial properties located at 670-680 Rosebank Road in Avondale, Auckland. Located on a 2.8ha site, there are four buildings leased to two tenants: NZ Comfort Group Limited and Dunlop Flooring Limited.

PFI already owns neighbouring industrial properties on Rosebank and Patiki Roads. When combined with these sites, an industrial estate of 8.6ha valued in excess of $110 million will be created, just 250 meters from the North Western motorway system. This is a strategic acquisition that presents PFI with a longer-term opportunity to create value by integrating the property with the Company’s existing holdings.

The properties are fully occupied and generate an annual rent of around $1.7 million with a weighted average lease term of over 4 years. The purchase price is $39.0 million, representing an initial return of 4.4%. The estimated market yield is 4.9%, and settlement of the acquisition will take place during the first quarter of 2021.

Tidal Road Update

On 14 August 2019 and 17 December 2019 PFI announced agreements to purchase industrial properties to be developed at Tidal Road in Mangere, Auckland, for a total of $54.4 million.

The agreements to acquire these properties were subject to market standard conditions, including sunset dates. Following delays caused by the COVID-19 pandemic and associated New Zealand Government enforced lock-downs, these sunset dates have now been reached and the agreements have been cancelled.

See the link below for more details:

Strategic Avondale Acquisition, Tidal Road Update

Source: Property for Industry Limited



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