Strategic Land Purchase for the Property Fund

10th May 2019

The Manager of the Trust Investments Property Fund confirmed on 10 May 2019 the unconditional purchase of 104 - 140 Neilson Street in Onehunga/Penrose for $16.4m.

 

The site is leased to NZ Bus, a company associated with Infratil and is utilised as a bus depot. It is a large piece of land being over 2 hectares in size located on a key arterial route.  The lease has 7 years to run with the tenant having 2 x 6 year Rights of Renewal (requiring 12 months notice to exercise the renewal period).

The property has a rental review due in November and valuation advice supports that it is likely that the rental increase will reach the rental review cap of $870,000.

The property has characteristics of a ground lease with its low level of improvements and therefore minimal operating expense exposure. This is a strategic land holding and one of the few largely undeveloped land holdings in Penrose.

 

Settlement date is scheduled for 10 June 2019.

Contacts

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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