Precinct Properties New Zealand, formerly known as AMP NZ Office, has sold its SAP Tower in Auckland to property mogul Sir Robert Jones for $97 million, $1.4m above its book value.
According to Precinct’s annual report the SAP Tower was valued at $95.6m as at June 30.
The company says it will use the proceeds of the sale to Robert Jones Holdings to repay bank debt and following the sale, which is expected to settle in February, Precinct will have gearing of around 30 per cent.
Precinct has been divesting non-core assets while expanding its Auckland holdings, including entering into a development agreement for a commercial office at the new Wynyard Quarter.
Auckland vacancy in city office buildings is at a 20-year low, as New Zealand’s biggest city has benefited from strong population growth, translating to rental demand for businesses.
“Over the past three years we have secured active opportunities at Downtown Shopping Centre and Wynyard Central in Auckland and Bowen Campus in Wellington that will improve the quality of the portfolio,” chief executive Scott Pritchard said.
“With these progressing well we have begun divesting out of our non-core assets to help fund these opportunities.”