Ar­gosy sells Me­ga­Cen­tre prop­erty

Kapi-Mana News - - NEWS - By CATHER­INE HARRIS

Listed prop­erty fund Ar­gosy Prop­erty has sold a por­tion of Porirua Me­ga­Cen­tre for $11.5 mil­lion.

Agents said the site at 2-10 Sem­ple St, which in­cludes Rebel Sports and Den­nys Res­tau­rant, was sold to ‘‘a sub­stan­tial re­tail prop­erty in­vestor’’.

The price was $100,000 be­low the val­u­a­tion on Ar­gosy’s web­site.

Ar­gosy, which owns sev­eral Welling­ton prop­er­ties, flagged last year that it would divest about $70m of non-core as­sets.

But it is also in buy­ing mode, spend­ing $59m in Fe­bru­ary on five in­dus­trial prop­er­ties in Gre­nada and Seav­iew.

Chief ex­ec­u­tive Peter Mence said Ar­gosy wanted to re­duce the re­tail seg­ment of its port­fo­lio.

‘‘ Part of our strat­egy is to re­duce our re­tail weight­ing in favour of in­dus­trial and com­mer­cial, so we’ve sold Waitakere Me­ga­Cen­tre at $45m and Porirua Me­ga­Cen­tre most re­cently.’’

Ar­gosy’s part of the Me­ga­Cen­tre has a shared car park and seven re­tail ten­an­cies cov­er­ing a net let­table area of 7046 square me­tres.

Other ten­ants are Re­duced to Clear, Hard­ings Fur­ni­ture, God­freys, NZ Post and Green­mark Fur­ni­ture. It pro­vides a com­bined an­nual rental of about $1,058,000 plus GST.

Be­fore the sale, Ar­gosy had owned the site for 15 years. It sold another chunk of the Me­ga­Cen­tre in 2013 to Mitre 10 op­er­a­tor Mar­tyn Lock­yer for $16.2m, who in turn halved it and sold off the Spotlight/Un­cle Bills Build­ing and 10 Tutu Pl. The main part of the cen­tre, an­chored by The Ware­house and Briscoes, has changed hands sev­eral times.

It was most re­cently bought from an Aus­tralian in­vestor in 2013 by Nel­son- based in­vestor Gaire Thompson for more than $30m.

Mence said Porirua had be­come a mori­bund mar­ket.

‘‘The road­ing changes haven’t helped. It al­ways used to draw from out­side its pri­mary catch­ment, but with in­creas­ing com­pe­ti­tion through the Welling­ton area, it’s some­what less so.

‘‘That is shown in the kind of ten­ant and the faster turnover. They tend to be more fo­cused on the im­me­di­ate catch­ment, as op­posed to a re­gional reach.’’

The deal was bro­kered by Carl Hast­ings of Paul Hast­ings and Co, and Bruce Cat­ley, of CBRE.

A bird’s-eye view of Porirua Me­ga­Cen­tre, part of which has been sold by Ar­gosy Prop­erty.

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