Market Update – further portfolio activity

Argosy Property Limited (Argosy) has announced the sale of two non-Core regional assets, 1478 Omahu Road in Hastings and 31 El Prado Drive in Palmerston North. 1478 Omahu Road has been sold for $10.2 million which represents a 12% premium over book value. Settlement will take place in March 2019. The property at 31 El Prado drive has been sold for $35.5 million, which represents a 25% premium over book value. Settlement will take place in December 2018. The divestment of these regional assets means that Argosy has only 3 properties outside its core Auckland and Wellington markets. In September Argosy acquired a freehold 15,838 square metre industrial yard in September in Roscommon Road, Wiri for $8.6 million. The site is currently leased to NZX listed Turners Automotive Group (TRA.NZ) on a 15-year lease, providing a holding return of 5% with fixed reviews of 2.5% per annum, with a market review in year 6. Argosy Chief Executive Officer Peter Mence said "We are pleased to have commenced what we envisage to be a mutually beneficial long-term relationship with an organisation that has a significant real estate footprint across New Zealand." - END - End CA:00326751 For:ARG Type:GENERAL Time:2018-11-13 09:28:07