12 November 2020


The Manager of Trust Management Property Fund is pleased to announce that the Fund has contracted to purchase two bulk retail properties in the popular Tauranga Crossing Lifestyle Centre.  The occupiers of the premises are Gilmours Supermarket, Farmers and Bed, Bath & Beyond.  Gilmours is the wholesale/trade supermarket operator which is owned by Foodstuffs.  The purchases will see an increased level of tenant and geographic diversification within the Fund, with 70% of the portfolio located in the “Golden Triangle” of Auckland, Hamilton and Tauranga.  The Weighted Average Lease Term of the leases is 6.4 years.  The leases have regular inbuilt rental growth of CPI+% increases.

In respect to the Long Term Strategic Property Sector Allocation Target, the purchases align with the Fund's strategy and will see the Bulk Retail exposure for the Fund increase to the targeted level of 30%, while the overweight Industrial sector allocation reduces to 33%, with a target of 30%.

The Lifestyle Centre developers have recently applied for Resource Consent to subdivide the properties from the balance of the Centre.  The contract is conditional upon the vendor and purchaser agreeing to the terms and conditions within the issued Resource Consent.  It is expected that the Resource Consent will be available in the coming months.  Settlement occurs on the issuing of titles.

Patrick O’Reilly, Trust Management’s General Manager Property noted, “In this competitive commercial property market we are pleased to position the Property Fund to purchase such quality assets.  The purchases aligns with the long term sector allocation strategy of the Fund and will further enhance the quality of the existing property portfolio”.

Further detail on the transactions will be provided when the purchases are unconditional.  In the interim any questions on the purchases can be directed to Patrick O’Reilly, General Manager Property.