Investore Property Ltd said on Friday it had secured an unconditional agreement for the sale of its Countdown supermarket at 17 Chappie Place, Hornby, Christchurch, for $21.5 million at a 6.26% yield.
The sale price represents an initial yield of 6.26% and a 10.8% premium on the property’s $19.4 million value in Investore’s 30 September 2017 interim financial statements. Settlement is scheduled for Friday 23 March.
This sale is part of a divestment programme Investore announced in November, relating to the $78.5 million purchase of 3 Bunnings properties in Hamilton, Rotorua & Palmerston North. Shareholders approved the Bunnings deal last month and it settled last Wednesday.
The Hornby sale follows on from Investore’s recently announced sale of its Fresh Choice Queenstown property for $11.1 million at a 4.8% initial yield, which represented a 12% premium on the property’s value in Investore’s September interim financial statements.
The supermarket was completed in 2010 on a 1.77ha site adjacent to the Hornby Hub shopping centre on State Highway 1. It has a 20-year lease from December 2012 to General Distributors Ltd with renewal rights up to 60 years. Sunil Bhana, Mike Houlker & Blair Young of Bayleys handled the sale
2 March 2018: Stride’s 3-property sale to Investore settles
Attribution: Company & agency releases.