PFI sells Bowden Rd property for $10 million

Property For Industry Limited (PFI) today announced that it has sold its property at 30 Bowden Road, Mt Wellington for $10.03 million.

PFI purchased the property in 1996 for $7.96 million and has just completed a $1.93 million expansion for the tenant, Fletcher Aluminium.

The purchaser is a private investor and the lease to Fletcher Aluminium expires March 2011.

The sale is unconditional and settlement is timed to occur on 5 March 2001. Proceeds from the sale will be reallocated to new investments - PFI recently announced the purchase of eight high-quality properties in Westfield, Mt Wellington for $23.15 million.

The company is also carrying out a $3.7 million expansion of its property at 62 Neales Road, East Tamaki for tenant Cardinal Freight Distribution Ltd and has other opportunities under consideration.

PFI general manager Mr Peter Alexander said the company had indicated at the time of purchasing the eight Westfield properties in December that some existing properties would be offered for sale to fund the acquisition.

He said the sale of the Fletcher Aluminium property represents a return of 11.53% (including a gain over cost of $142,000) since purchase (before company overhead, tax and debt). This compares to the Property Council of New Zealand Auckland industrial property index with an annualised total return for the four years to June 2000 of 11.16%.

“Looking at the historic return, the property has been a good investment for PFI and has outperformed the benchmark index,” said Mr Alexander.

PFI is the only property investment company listed on the New Zealand Stock Exchange which specialises solely in industrial property.

PFI is managed by AMP Henderson Global Investors Ltd, which is New Zealand’s largest private property investment manager and manages more than $1.4 billion of property in New Zealand.

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