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ING Property replaces difficult retail site

Wednesday 8th September 2010

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ING Property Trust, which is changing its name to Argosy Property Trust next month, has sold a retail site in Manukau and bought property in St Lukes for the same price.

The listed property investor sold its 792 Great South Rd, Auckland, property for $10.5 million, ahead of its $10.25 million book value, but down on the $16.4 million it paid in 2007.

The site has always had vacant space since ING took it onto its books, and it was the property manager’s only retail investment with vacancies as at March 31, according to its annual report.  

The property has been replaced by the Storage King building at 7 Wegener Place in St Lukes, which s adjacent to two titles already owned by ING. The property was bought at a 6% discount to its valuation, and will give the investor a yield of 9.24%.

“In terms of our portfolio, this increases its value, yield, and WALT (weighted average lease term),” said general manager Peter Mence in a statement.

Last month, ING told investors at its annual meeting that commercial office space will continue to struggle in the next year, and that the trust’s manager had been working dispose of lower-value, high-risk properties.

The sale is unconditional and due to settle at the end of the month.

The shares were unchanged at 71 cents in trading yesterday.

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