NPT sells Newmarket properties

Wednesday 19th August 2009

National Property Trust has sold two mainstreet Newmarket shopping strip properties for $49 million to reduce debt, lessen exposure to retail and prepare for alternative purchases.

The Rialto Centre and Carlton DFK Tower in central Newmarket, an up-market Auckland shopping precinct, were generating around 55% of their income from retail rentals, and sold at a 5.77% discount to valuations at the company's financial year end, March 31, reflecting prevailing economic conditions, general manager John Crone said.

The sale brings down net debt to below 25% and was consistent with the company's strategy, which includes a desire to improve the average weighted lease term.

Settlement date is September 11. While opportunities for fresh acquisitions are in prospect, it was "too early to get excited", Crone told BusinessWire.

Businesswire.co.nz

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