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Ann: ASSET: ARG: Argosy Portfolio Acquisition & Bank Facility Restructure

    • Release Date: 10/02/15 09:37
    • Summary: ASSET: ARG: Argosy Portfolio Acquisition & Bank Facility Restructure
    • Price Sensitive: No
    • Download Document  2.82KB
    10/02/2015 09:37
    REL: 0937 HRS Argosy Property Limited
    ASSET: ARG: Argosy Portfolio Acquisition & Bank Facility Restructure
    Wellington Industrial Property Acquisition
    Argosy Property Limited (Argosy) is pleased to announce the unconditional
    agreement to acquire a portfolio of five industrial properties in the
    Wellington region for a total of $59 million.
    The portfolio comprises four industrial properties located in the
    Seaview/Gracefield precinct of Lower Hutt, and one industrial property in the
    industrial precinct of Grenada North.
    The portfolio provides a combined lettable area of approximately 42,600 sqm
    and the properties have a weighted average lease term of 5.19 years.  The
    overall WALT of the portfolio will be 5.42 years following the acquisition.
    Settlement is expected to occur this month.
    Property Market Value Initial Yield WALT (by rental) Major tenant
    14 Tunnel Grove, Gracefield $ 2,640,000 8.24% 5.89 Wesfarmers Industrial &
    Safety NZ
    147 Gracefield Road, Gracefield $ 11,700,000 8.23% 2.08 Linfox Logistics (NZ)
    19 Barnes Street, Seaview $ 10,930,000 7.72% 8.75 New Zealand Van Lines
    39-49 Randwick Road, Moera $ 17,070,000 8.68% 3.77 Debonaire Furniture
    56/68 Jamaica Dr, Grenada North $ 16,600,000 7.90% 6.66 Recall NZ
    Totals $ 58,940,000 8.18% 5.19
    The acquisition improves geographic diversification by gaining an exposure to
    the Wellington industrial market.  Portfolio sector allocations remain in
    line with the levels targeted in the strategic plan.
    The acquisition will be fully funded by the drawdown of debt from Argosy's
    syndicated bank facility.
    The Company's debt to total asset ratio at 31 March 2015, following the
    acquisition and the previously announced disposal of the Waitakere Mega
    Centre in Henderson, is expected to be approximately 38%.
    Bank Facility
    Argosy is also pleased to announce that it has restructured its syndicated
    bank facility with ANZ Bank New Zealand Limited, Bank of New Zealand and the
    Hongkong and Shanghai Banking Corporation on improved terms.
    Tranche A has been increased from $250 million to $275 million and now
    expires on 30 November 2017.  Tranche B has also been increased from $250
    million to $275 million and now expires on 30 November 2019.
    As part of the restructure Argosy will receive immediate margin and line fee
    reductions and achieve overall annual savings of $0.2m (after including all
    upfront costs and line fees on the additional facility).
    - END -
    Press enquiries
    Peter Mence
    Chief Executive Officer
    Argosy Property Limited
    Telephone: 09 304 3411
    Email: [email protected]
    Dave Fraser
    Chief Financial Officer
    Argosy Property Limited
    Telephone: 09 304 3469
    Email: [email protected]
    Scott Lunny
    Investor Relations Manager
    Argosy Property Limited
    Telephone: 09 304 3426
    Email: [email protected]
    End CA:00260437 For:ARG    Type:ASSET      Time:2015-02-10 09:37:54

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