PFI announces $22 million
Mt Wellington acquisition
News release to New Zealand Stock Exchange
December 17, 2009
Listed industrial property investor Property For Industry (PFI) has announced the strategic acquisition of a prime, $22 million Mt Wellington distribution centre in an off-market transaction.
The property (pictured below), at 7-9 Niall Burgess Rd, Mt Wellington, is located between two of PFI’s existing properties on the Westfield Industrial Estate and will become PFI’s 16th property in this precinct.
PFI general manager Ross Blackmore said the acquisition will enhance the company’s earnings and weighted average lease term (WALT) and the overall quality of the company’s portfolio.
The purchase price reflects a yield of 8.5 percent. The tenant, DHL Supply Chain NZ Ltd, a subsidiary of Deutsche Post, has a seven-year lease term, with CPI-based rent reviews beginning in two years and taking place annually thereafter. The 17,000 sqm building was constructed in 1996 on a 2.912 hectare site.
Settlement will take place prior to Christmas and the purchase will be fully funded with bank debt.
PFI is New Zealand’s only listed company specialising in industrial property investment, and is managed by AMP Capital Investors. The company is about to complete its 15th year since listing.
For further information:
Ross Blackmore, General Manager, Property For Industry
Ph 09-307 8393 or 029-307 8393
Email ross.blackmore@ampcapital.co.nz