Busy week for Property For Industry

Friday 13th July 2001

By Campbell McIlroy

The darling of aged investors Property For Industry has had a busy week selling two properties, in Hamilton and Auckland, and expanding another property in return for a lease extension.

Yesterday the company announced the lease and sale of its 8997sq m property at 5 Maui St in Hamilton for $3 million to the Stock Exchange.

PFI signed local food processor Prolife Foods to a medium-term lease at $300,000 a year and then sold the building to the tenants' family trust.

The company still owns the balance of the property, which comprises an industrial building of 1311sq m on a 7910sq m site. The entire property was bought for $4.18 million and valued at $3.85 million at December 31.

PFI has also sold units A and B at 21 Porana Rd in Glenfield for $1.225 million.

The sale was at a slight discount of $5000 to book value and was on a long-term lease to Spa Pool manufacturer Leisurite Products for $132,000 a year.

PFI General manager Peter Alexander said there had been some recent controversy over the accuracy of property company valuations but the sales confirmed the board and management took particular care to ensure its valuations were accurate.

Mr Alexander said shareholders could expect another $3-4 million worth of sales before the end of the year as the company continued its programmes of divesting of non-core assets.

Earlier in the week the company announced it would spend $560,000 to expand its Hurricane Wire Products facility at Cryers Rd in East Tamaki.

In return for adding 1225sq m to the 6379sq m building, adding a canopy and extending the yard, the lease on both the Cryers Rd property and the adjoining Stonedon Dr property would be extended to 12 years from completion of the works in October.

PFI bought both properties in 1997 in a 12-year sale and lease-back deal with the existing lease due to expire in August 2009.

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