Kiwi Income Property Trust, the biggest listed property investor, will sell a two-tower office complex in Auckland CBD to a company associated with privately held Brisbane-based Bloomberg Incorporation.
The trust’s manager, Kiwi Income Properties, has entered into a sale and purchase agreement with Auckland City Holdings in a two-stage deal that will see KIP paid $NZ47.5 million ($A42.11 million) up front for 50 per cent of 205 Queen Street, it said in a statement on Wednesday.
The remaining tranche will be at market value in either March or September of every year up to March 2017, at the buyer’s option. Kiwi Property Management will continue to manage the property.
“This sale is consistent with our strategy of recycling capital out of mature assets to maintain balance sheet flexibility,” said Chris Gudgeon, chief executive of the manager.
The complex comprises two towers, one 17 levels and the other 22 levels, with basement parking for up to 131 cars, and has an occupancy rate of 79 per cent.
KIP units rose 0.5 per cent to $NZ1.09 on Wednesday, and have declined 5.7 per cent this year.