Property Trust Acquires Capital Properties Stake

Thursday 18 November 2004

Press Release: Kiwi Income Properties Limited

By The Landlord

Kiwi 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

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.

Mortgages

LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer