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Argosy gets book value for sale of Wakefield St site

Friday 1st June 2012

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Argosy Property, whose shareholders agreed to corporatise the company after buying out the ANZ Bank-owned manager last year, has announced its second sale in as many days, the property at 221 Wakefield Street in Wellington.

The sale price of $4.5 million amounts to current book value, the Auckland-based property investor said in a statement today. The property has been sold to an owner-occupier who plans to develop the site for their own use.

Last week, Argosy said it wanted to sell underperforming assets and vacant land to further reduce its $382 million of bank debt. It announced the sale yesterday of an empty building in Auckland's Albany suburb for a 7 percent discount to its $6.9 million book value.

The Wakefield St site "has been marginally cash-flow negative since the termination of a ground lease last year," Argosy said. Development plans for the site "are not currently feasible for Argosy, after allowing for an acceptable development risk margin."

The sale settles on July 31. Argosy's shares fell 0.6 percent to 86 cents on the NZX and have gained 7.6 percent this year.

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