Precinct Properties rides high
Precinct Properties has booked strong profits as it undertakes $1 billion worth of developments.
The company has posted a net profit of $138.2 million for the year to June 30, up nearly 13 per cent, and lifted its dividend forecast by 3.7 per cent.
Its property portfolio also gained in value, rising to $81.2m from $64.8m last year.
Precinct’s chief executive Scott Pritchard said the company had made very satisfying progress on several fronts over the year.
‘‘The operational and financial results for the year as well as the commitments to Commercial Bay and Wynyard Quarter stage one were significant highlights.
‘‘However, the post balance date commitment by the Crown to 68,000 square metres of Wellington office space was arguably the key achievement, as it will transform the quality of our Wellington government portfolio.’’
Precinct has secured long government leases at the Bowen Campus, Pastoral House, Mayfair House and 3 The Terrace.
Its tower block at 1 The Terrace, which is home to the Treasury and Ministry of Health, had also had its lease extended.
The commitment to Bowen Campus means Precinct can begin $203m worth of refurbishment work.
Meanwhile, Precinct has begun work on pulling down the old Downtown shopping centre on Auckland’s waterfront to make way for Commercial Bay, a 39-storey tower block and three surrounding buildings.
The tower is now 60 per cent leased, with law firm Minter Ellison Rudd Wattsand and fashion retailer H&M as flagship tenants.
Nearby at the Wynyard quarter, the company had pre-leased 86 per cent of the first stage of the quarter’s commercial centre.
Precinct expects the work to be finished in four months’ time, while the quarter’s innovation building is on track for completion mid next year.
Pritchard said vacancy in Auckland CBD was still at historic lows.
‘‘The Auckland city centre retail environment continues to strengthen driven by strong demand from a unique blend of international and local retailers, improvement in dining and entertainment precincts and strong growth in tourist numbers.’’
Precinct is still waiting for a decision from the Environment Court on its proposed purchase of Queen Elizabeth Square, a councilowned area next to Commercial Bay.
A hearing was held in July, and Pritchard said it would determine whether the sale and its incorporation into Commercial Bay would go ahead.
Precinct forecast a dividend of 5.6 cents per share next year.