Asset Plus sells Heinz Watties distribution centre

Asset Plus sells Heinz Watties distribution centre for $29.1 mln

By Paul McBeth

July 18 (BusinessDesk) - Asset Plus has sold its Heinz Watties distribution centre in Hastings for $29.1 million to a property syndication which it will underwrite for a fee.

The real estate investor signed an unconditional agreement with E+O Property Syndication with settlement on Dec. 17, it said in a statement. As part of the deal, E+O will syndicate the property and Asset Plus will underwrite the $16.25 million of equity raised to help fund the deal for a $487,500 fee.

Asset Plus, which used to be called NPT, said the sale will lower earnings to 3.35 cents per share, or about $5.4 million. The proceeds will reduce bank gearing to 26 percent, providing more headroom on the balance sheet for future acquisitions.

The earnings impact excludes the underwriting fee, which the company said will offset lost rental income for the rest of the year.

The property investor is repositioning its portfolio under the new oversight of Augusta Capital, with a view to buying new buildings where it can unlock value. That's included buying an Auckland CBD building for $58 million from Auckland Council.

The shares last traded at 64 cents and have gained 11 percent so far this year, lagging behind an 18 percent increase on the S&P/NZX All Index over the same period.

(BusinessDesk)

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