PFI Sells In Hamilton And Glenfield

Listed industrial property investor Property For Industry (PFI) announced the leasing and sale of part of its property at 5 Maui Street, Hamilton.

The lease over the property, formerly occupied by Turners and Growers, expired in April and the main building of 8,997m2 on 3.256 hectares of land has been leased to local food processor Prolife Foods for $300,000 per annum. The building has been sold to a family trust of the tenant for $3million. PFI General Manager Peter Alexander said the sale price was at book value.

As at 31 December 2000 the entire property was valued at $3.85 million compared to its original cost of $4.18million.

Rental commences on 1 October 2001 and settlement of the sale will occur after March 2002 when subdivision and other conditions have been finalised.

PFI is now seeking to lease and sell the balance of the property comprising an industrial building of 1,311m2 on 7,910m2 of land.

“The property no longer meets PFI’s investment criteria and is being sold in line with our strategy to divest non core assets” said Mr Alexander “The property has been owned by PFI since 1994, the second acquired by the company, and provided a strong income over that time.”

PFI has also sold units A&B at 21 Porana Road, Glenfield for $1.225m. The property was leased long term to Spa Pool manufacturer Leisurite Products for $132,000 per annum. The sale is at a slight discount to book value ($5,000).

Mr Alexander noted that the sales at book value confirmed the company’s published Net Tangible Asset (NTA) backing. “There has been some recent controversy over the accuracy of property company valuations. PFI’s Board and management take particular care to ensure that the valuations are accurate and these sales confirm that view.”

PFI is New Zealand’s only listed Property Company investing exclusively in the New Zealand industrial property sector. The company is managed by AMP Henderson Global Investors, which manages over $360 billion of assets worldwide.

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