Sale of 50% Interest in Izone Drive Property
The Warehouse Limited – South Island Distribution Centre – IZone Industrial Park - Christchurch
Trust Management is pleased to advise that the Trust Investments Property Fund (“Fund”) has confirmed an unconditional contract to sell a 50% interest in the IZone Drive property to the New Zealand Methodist Trust Association (“NZMTA”).
The Trust Investments Property Fund will continue to own the other 50%. Trust Management will continue to manage the property on behalf of both parties.
Patrick O’Reilly, General Manager Property for Trust Management highlighted that this is a great outcome for the Fund. He noted “NZMTA are an ideal joint owner in the property with the Trust Investments Property Fund as they also have a long term investment focus and similar values to many of the charities that invest with the Fund currently”.
Patrick also noted “The early sale of the property addresses the Funds over-weight position to this property and tenant post the expansion of the building in early 2017. The Warehouse is a high quality tenant and we are pleased that we have found a suitable joint owner for the Fund”.
The sale is projected to reduce the industrial weighting in the Fund portfolio from 54% to 40% post the sale. It is a positive step to weighting the portfolio to closer align with the Funds long term Strategic Sector Allocation target profile.
Settlement is post Practical Completion of the expansion works of the building which is forecast to be February 2017. The full development profit associated with the building expansion and extended lease with The Warehouse will be realised in the price received from NZMTA.
The price is based on the net income for the property which includes the cost to complete the expansion and is expected to be around $25 million. Further details of the sales transaction will be announced over the coming months.
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 www.trustmanagement.co.nz/investment-products.