NPT 's Property Porfolio Gains 13.33% Over Year

News Release 18 April 2013

For immediate release

NPT 's Property Porfolio Gains 13.33% Over Year

NPT Limited today reported its property valuations for the year ended 31 March 2013. The listed property company’s continuing portfolio of retail, commercial and industrial property was valued at $128.35 million, up $15.1 million from the 31 March 2012 portfolio valuation of $113.25 million; a gain of 13.33%.

Assessed by independent valuers, the property valuations are still subject to a final review by NPT's auditors and will be confirmed in NPT’s financial results for the year to 31 March 2013.

During the 2013 financial year, the company rationalised its property holdings and sold two of its properties: 342 Lambton Quay was sold for $24.5 million in September and its Napier retail property at Ocean Boulevard changed hands for $4.521 million in November 2012.

NPT's chief executive officer, Kerry Hitchcock says, "These property valuations are very positive news for NPT. Particularly gratifying is to see the value of Christchurch’s Eastgate Shopping Centre continues to rise - from $35.5 million a year ago to its present value of $44.15 million at 31 March 2013. This increase of 24.37% over the 12 month period reflects the strong leasing activity that’s been undertaken in the last year.

“The Christchurch City Council has leased a 1,200m2 space on Eastgate’s first floor for its Linwood Library and Service Centre. The lease term is three years from 1 March 2013 with a two-year right of renewal. Fit-out has begun and the library will be formally opened by Christchurch mayor Bob Parker on 30 April.”

In Eastgate’s newly reconfigured ground floor space, Lincraft (the Australian fabric, craft and home furnishing store) signed an eight year lease for 1,500m2 space; it opened in late November. At the same time, national bookstore and stationery retailer PaperPlus opened on the ground floor in a 375m2 space, as did Number One Shoes in an 800m2 space.

“The rejuvenation of Eastgate after the damage sustained in the 2011 earthquakes has been the highlight of the year for NPT. We’re very much looking forward to the Linwood Library and Service Centre opening soon; this will bring in considerably more foot traffic to Eastgate. These new leases have significantly increased the value of this property, and there are more leases and development in the pipeline,” says Mr Hitchcock.

NPT’s Print Place property in Christchurch’s Middleton has risen in value over the 12 month period from $12.5 million to $13.4 million, an increase of 7.2%. This increase has been driven by recent property sales with a strong demand for quality industrial property.
Cont’d . . .
Natcoll House in Hereford Street, Christchurch continues to be the subject of a material damage insurance claim from the 2011 earthquakes. Its valuation remains at $12 million. Negotiations continue with the building’s insurers, says Mr Hitchcock.

The value of Heinz Wattie’s 50,000m2 National Distribution Centre located in Hasting has risen 9.09% for the full year as at 31 March 2013 from $24.75 million to $27 million. This is reflective of the 15 year lease to Heinz Wattie’s (to 2027) that’s now in place.

The AA Centre, located Auckland’s Albert Street has recorded an 11.58% increase in value, from $28.5 million to $31.8 million over the 12 month period to 31 March 2013. This rise takes into account a three year lease renewal with the Department of Internal Affairs, and a new six year lease with AA Insurance.

In March, the company moved its head office to Auckland where it has leased space in the PWC Tower in Quay Street. “This move will bring efficiencies and flexibility to NPT’s operations, and it will be closer to where the board sees some future growth opportunities for the company,” says Mr Hitchcock.

“The 13.33% rise in value of the property portfolio over the year to 31 March 2013 is very pleasing; it’s a significant increase and the board is delighted. It reflects the hard work of the company’s leasing team and its property managers, Jones Lang La Salle, over the last 12 months.

“Looking ahead to the 2014 year, the board is focussing on investments where the property type and scale create management efficiencies, and fit NPT’s yield and growth requirements,” says Mr Hitchcock.

ENDS

© Scoop Media