Property Fund Purchases A Supermarket

The Trust Investments Property Fund has announced the purchase of a Countdown supermarket in Hornby Christchurch.

 

The property located at 17 Chappie Place was purchased through a tender process from the listed property company, Investore and settlement is due on 23 March 2018.

 

The purpose built property is modern in nature having been developed in 2010 with a 20 year lease commencing in 2012.  The property was purchased for $21.5m at an attractive initial income yield of 6.30%.  The purchase is accretive to the current portfolio yield and increases the property portfolio from $108.8m to $130.30m.

 

With the purchase the Weighted Average Lease Term (WALT) for the portfolio is extended from 10.3 years to 11.1 years - this is a market leading level of lease term commitment. 

 

Countdown (General Distributors Limited) are currently a tenant within the portfolio contributing 22% of the portfolio income. With the Christchurch property purchase the GDL rental contribution within the portfolio increases to 36%. 

 

Patrick O’Reilly, GM Property noted, “This is a strategic purchase for the Property Fund.  The tenant covenant is very high and aligns with the risk averse nature of the Fund unit holders.  With its long term lease, attractive yield and modern improvements the supermarket further enhances the Property Fund property portfolio.” 

Contacts

Grant Hope

Chief Executive Officer

09 550 4044

 

 

 

 

Shane Coward

General Manager

09 550 4045

 

 

 

 

 

 

Patrick O'Reilly

General Manager Property

09 550 4056

 

 

 

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.

© 2019 Trust Investments Management Limited