Rātā Foundation Transaction
30 November 2018
Trust Investments Property Fund has announced that after a period of due diligence, it has entered into an unconditional contract for the the purchase of three commercial properties in Christchurch. The properties are being purchased from The Rātā Foundation (previously Canterbury Community Trust).
The properties are being acquired for $27.3m and Rātā Foundation will be receiving payment by way of additional Units in the Property Fund (Rātā Foundation being an existing investor).
The properties are located at 2 Waterman Place, 126-128 Montreal Street and 55 Shands Road. The properties are diversified by sector being speciality retail, commercial office and industrial respectively.
With this transaction the Property Fund achieves a major milestone, increasing the value of the Fund to just over $200m, providing for greater diversification of the Fund.
On settlement the Property Fund will be made up of 20 properties located in Auckland, Hamilton, Wellington and Christchurch with 38 tenants paying $11.3m in net rental per annum, as well as cash available for investment and acquisition of circa $16m. The portfolio continues to have its greatest exposure to the Auckland market with just under 50% of the portfolio being in this city.
The Weighted Average Lease Term of the portfolio is maintained at just over 10 years post the purchase of the 3 properties. The purchase of the properties is accretive for the Fund with an increase in the portfolio income yield for investors.
Settlement occurred on 5 December 2018.
If you have any questions, regarding this transaction, or the recent lease extension at the Lynfield Countdown, or the acquisition at Wiri Station Road, please do not hesitate to contact, Patrick O'Reilly, General Manager Property.
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