Argosy sells Auckland property for $10.4 million
By Suze Metherell
May 8 (BusinessDesk) – Argosy Property, the fourth-largest listed property investor on the NZX by market value, has sold
its underperforming Mount Auckland property for $10.4 million.
The sale was a 2.7 percent premium to its March book value and is part of Argosy’s plan to ditch underperforming assets,
the company said in a statement. The Pacific Rise commercial property had an occupancy rate of about 75 percent
according to Argosy’s website, and has been bought by an owner-occupier.
“Returns from the property had suffered from long term vacancy issues and a short weighted average lease term,” Argosy
said.
Last December the company got rid of its underperforming Ellerslie holdings for $10.4 million, at 92 percent of its book
value.
Shares in the company rose 0.5 percent to 95 cents. The stock has declined 8.5 percent over the past year
underperforming the NZX 50 Index’s 12 percent rise, while the property index, made up of 10 NZX-listed property stocks,
has declined 1.1 percent in the past 12 months. The stock is rated an average of ‘hold’ based on five analysts surveyed
by Reuters and has a median price target of $1.
(BusinessDesk)