105 Wiri Station Road Purchase
The Trust Investments Property Fund announced on the 4th July 2018 that it has contracted to purchase a substantial industrial property in Wiri Station Road in South Auckland.
The property is undergoing major refurbishment in preparation for the infrastructure contractor, HEB Construction to take occupation and for a new 15 year net lease to commence.
Settlement will not occur until Practical Completion of the property works has been achieved and the new lease has commenced; expected to be early November.
The purchase will see the Weighted Average Lease Term (WALT) of the property portfolio further enhanced from 10.7 years to 11.2 years. The long term contracted commitment from quality tenants is a key element of the risk averse nature of the Fund. In addition to a strong tenant covenant, under the Agreement to Lease, the tenant also provides a 12 month gross rental Bank Guarantee. The purchase price will be close to $19.5m at an initial income yield of 5.39%. The lease has annual rental increases of 2.5% with market rental reviews every 5 years (cap and collar mechanism). The purchase will see the property portfolio increase in size from $130m to an estimated $150m and importantly all investment monies in the Property Fund will be fully allocated.
This acquisition announcement follows the Property Fund purchasing a modern supermarket property in Christchurch for $21.5m in March.
Under the Financial Markets Conduct Act this communication may be deemed to be an advertisement for an offer of units. Trust Investments Management Limited is the issuer of the units to be issued under the offer to which this advertisement relates. A product disclosure statement for the offer, which sets out the terms and conditions of the offer, is available, and can be obtained at