Stride sells Albany property to Oyster, buys Concourse from Goodman

Stride Property Ltd has unconditionally agreed the sale of one property to property & funds manager Oyster Management Ltd and the purchase of another from the Goodman Property Trust.

The sale:

North-east

Albany

33 Corinthian Drive:
Features: tenant ASB Bank Ltd
Outcome: unconditional agreement for sale for $50.5 million, settlement scheduled for 1 April 2019, representing an initial yield of 5.88% and a 4.7% premium to the property’s value of $48.25 million as recorded in Stride’s September half-year accounts

Stride has committed to undertake $600,000 of upgrade works before settlement.

The sale was signalled earlier this year. Stride chief executive Philip Littlewood said today: “This transaction aligns with Stride’s strategy to recycle capital from non-core assets and into office & industrial assets that we consider will form the base of portfolios that will, in future, become Stride’s new investment management products. We are delighted to end the year with this positive result.”

The purchase:

North-west

Henderson

The Concourse, 1-11 Selwood Rd & 6-12 The Concourse:
Features: 4ha industrial property adjoining State Highway 16 – 1.84ha with established buildings, 9700m² of industrial space, 2.17ha of development land, the former Alloy Yachts premises & an adjoining industrial property
Outcome: sold for $35 million following an unsolicited offer, settlement scheduled for 27 June 2019, initial yield for Stride of 6.1%

Mr Littlewood said: “This acquisition aligns with Stride’s strategic investment focus on growing its portfolio of quality industrial investment property, and builds on the Stride Property Group’s track record of industrial development expertise, following on from its comprehensive development of 6 buildings at O’Rorke Rd, Penrose, and the recently announced development of its property at Springs Rd, East Tamaki.

“Stride focuses on acquiring & developing properties in key industrial locations which are well serviced with connection to significant roading infrastructure. The West Auckland site has immediate access to the Lincoln Rd interchange, with connectivity north via the Western Ring Route and south via the Waterview tunnel.”

Investment management director James Spence, of the Goodman trust’s manager, Goodman (NZ) Ltd, said: “We’ve added significant value since acquiring the asset in 2016, reconfiguring the layout, creating additional yard space and securing new leases. It was a compelling offer from Stride and, rather than complete the development of this property, we’ll be reinvesting in new opportunities elsewhere in Auckland.”

The sale adds about 0.5c/unit to the Goodman trust’s net tangible asset backing.

Earlier stories:
18 July 2017: Goodman settles Henderson purchase
22 October 2012: DNZ confirms purchase of development site between 2 of its Albany buildings
13 August 2012: DNZ buys Corinthian Drive building, conditional on development site

Attribution: Company releases.

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