Princes Wharf Property to go to Market

Princes Wharf Commercial and Retail Property to go to Market

The partners of the Princes Wharf Property Fund Limited and Company have voted to approve the proposed break up and sale of the commercial and retail property of the Special Partnership located on Auckland’s Princes Wharf.

This property comprises all the separately titled properties on the Wharf except the car parking, the Hilton Hotel and residential apartments, but includes Hewlett Packard House, formerly the Ports of Auckland headquarters.

The meeting of the Special Partners held in Wellington on Friday 18 February was convened by St Laurence.

Kevin Podmore, St Laurence’s Managing Director, said “Of the Special Partners who attended or for whom Proxies were received, 98% voted in favour of the proposed sale representing 1785 units; or 79.68% of the total number of interests in the Special Partnership.”

St Laurence manages the Special Partnership and organised $14 million of funding through the Special Partnership that enabled the assets to be purchased for $46.6 million in April 2001.

The properties will be marketed and sold in two phases. Phase I will comprise the 26 retail properties and the four larger office units. The retail properties will be auctioned on 16 March and the four commercial units offered for sale by a tender process which closes on 23 March.

Phase II will subsequently involve the marketing and sale of Hewlett Packard House by tender. Bayleys has been selected as the Agent for the two phase sale process.

“The Special Partnership’s performance has been consistently strong since it was established, with the operating profit and capital growth above the original forecasts set out in the Prospectus. By bringing the properties to market now, we capitalise on the demand for well located retail and commercial property and provide the original investors with a return boosted by the increase in the value of the assets.”

“The sale is said to be the largest sale of individual retail properties on one site and we conservatively anticipate a total sale value of $60 million which will have a significant positive impact on the net asset backing per unit and the ultimate return to our investors,” Mr Podmore said.

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