Argosy Property Ltd said on Friday it had a $50 million estimate of the cost of reinstating the quake-affected NZ Post House in Wellington, based on a preliminary scope of works.
The building at 7-27 Waterloo Quay sustained damage to building services in the 7.5-magnitude Kaikoura earthquake on 14 November 2016. Argosy chief executive Peter Mence said independent engineers had confirmed that the building remained structurally sound, but significant replacement of fitout & services was required. NZ Post has reoccupied the ground floor & 4 other levels.
Mr Mence expected the damage to the building services & fitout to levels 1-4 & 7 would be repaired during the next financial year. Argosy has lodged a claim for the reinstatement cost & associated loss of rents under its material damage & business interruption insurance policy (less a $4.8 million deductible).
Under New Zealand accounting standards, Argosy can’t include expected insurance proceeds in its financial results until the proceeds are quantified & agreed. Mr Mence said that if they weren’t included, the loss of rents for the current year would have a net after-tax impact of about $1.85 million, or 0.23c/share in the period to 31 March 2017.
“This will have no impact on the March 2017 full-year dividend, which as previously announced is expected to be 6.1c/share and be fully paid from net distributable income for the year.”
Attribution: Company release.