Trust buys Christchurch property from retail giant

By Phil Boeyen, ShareChat Business News Editor

Monday 28th January 2002

The National Property Trust (NZSE: NAP) has further strengthened its investment at a major Christchurch shopping centre by agreeing to buy a property owned and occupied by The Warehouse (NZSE: WHS).

National Property Trust says intends to buy the property at Eastgate Mall in Christchurch's eastern suburbs from The Warehouse subsidiary, Eldamos Investments.

The sale price is $9.135 million with settlement due by the start of February. A long-term lease to The Warehouse is in place.

"The property, which is the largest The Warehouse retail store in the country, will be integrated into the adjoining shopping centre which is currently being extensively redeveloped and will boost the total retail area to approximately 30,500 square metres," the trust says.

"On completion, Eastgate will have a total value of more than $70 million."

The National Property Trust announced details of its redevelopment of the Eastgate Mall late last year with completion slated for early 2003.

It's estimated the project will cost around $29 million and on completion will increase the trust's exposure to retail property to around 60% of its total portfolio.

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