Rebrand for NPT as asset sales wind up

Strategy

Originally it was National Property Trust, then it was NPT – now it’s Asset Plus.

The latest brand refresh comes as the Christchurch-based listed company comes under the management of Auckland-based Augusta Capital, which is also listed on the New Zealand stock exchange.

Augusta recently offered shareholders a new direction after several years of disappointing returns from Asset Plus, the smallest listed property company.

Since taking over, Augusta and the new directors at Asset Plus have initiated asset sales including

17 Print Place, Christchurch, for

$8 million to a company called Whatever It Takes 2003, and owned by Dunedin developer Carl Angus.

Asset Plus booked a loss of

$2.97m on the sale.

The next sale from the shrinking asset base will be the AA Centre at 99 Albert St in central Auckland to SkyCity Entertainment Group for $47m. That sale is due to be settled this month.

This will leave Asset Plus with just three assets – a large $27m Heinz Wattie’s distribution centre in Hastings, the $36m Stoddard Shopping Centre in Mt Roskill, Auckland, and the $59m Eastgate Shopping Centre in Christchurch.

Eastgate was the core property of the company when it was floated on the stockmarket in the 1990s. However, it failed to return expected profits and other properties were bought into the portfolio.

Eastgate lost an anchor tenant after the 2011 Canterbury earthquakes and Asset Plus has worked to sign up new tenants to better suit the Linwood catchment.

‘‘It was agreed the brand identity was tired and lacking a legacy to take into the future.’’

Asset Plus’ new chairman, Bruce Cotterill, recently reported how Augusta completed a comprehensive review ‘‘to understand how the brand was viewed by its shareholders, and factoring its substandard historic performance’’.

‘‘It was agreed the brand identity was tired and lacking a legacy to take into the future,’’ he said.

‘‘In collaboration with Augusta, our board have now identified a defined value add strategy.

‘‘We believe this strategy differentiates Asset Plus from the sector and provides a framework for relative outperformance.

‘‘The company will invest in assets, and recycle capital out of existing assets, that are attractive based on property, demographic, business and economic trends and which provide diversification.’’

A brand launch video can be found of the company’s website.

The most recent annual result for the year ended March 2018 showed declining asset values and a net profit after tax of $3m, thanks to the $4.5m that Augusta paid Asset Plus to take over the management contract and booked as income in the accounts.

Tangible asset backing was 70 cents a share but the shares are trading at about 58c each, reflecting the sentiment of shareholders.