Property Trust Acquires Capital Properties Stake
Thursday 18 November 2004
Press Release: Kiwi Income Properties Limited
By The LandlordKiwi Income Property Trust announced today it has reached a 19.9% interest (inclusive of shares held by associates) in Capital Properties New Zealand Limited (CNZ), at a cost of $53.4 million. The acquisition is to be debt funded, and will be accretive for the Trust’s unitholders.
CNZ is a NZX listed commercial property company with total assets of $439.2 million as at
30 September 2004. The CNZ portfolio has a high level of exposure to the government sector (52% of total revenue) in Wellington and includes a substantial private sector office component (35% of rental revenue) which is largely in Auckland. CNZ also recently acquired a shopping centre in New Plymouth. The Trust and CNZ already have a relationship through their joint ownership of National Bank Centre, Auckland.Chief Executive of the Manager of the Trust, Angus McNaughton, said Kiwi Income Property Trust was a New Zealand based trust, primarily owned by New Zealand investors. The Trust viewed its investment in CNZ as a strategic stake in a complementary New Zealand property company.
“While the two businesses have many common characteristics, the investment offers the Trust exposure to different tenant and geographic sectors. CNZ’s high government sector weighting in particular is a unique strength.”
Mr McNaughton said the Trust looked forward to engaging in constructive dialogue with the CNZ board and management.
Commenting is closed
Housing confidence has been dealt a hefty blow by the Covid-19 crisis with house price expectations plummeting to new lows.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.