Sharechat Logo

Argosy sells under-performing Ellerslie property at just below book value

Monday 16th December 2013

Text too small?

Argosy Property, the fourth-biggest listed property investor by market value, has sold an underperforming office building in Auckland's Ellerslie for $10.4 million.

The sale was at 92 percent of book value and is part of Argosy's plan to ditch underperforming assets, the company said in a statement.

"The property, which has suffered from a long term vacancy factor, has provided a disappointing total return of less than 5 percent and has been available for sale for some time," Argosy said.

"There was a requirement for significant capital expenditure on the building and this combined with the historical difficulties in maintaining an acceptable occupancy rate meant the total return was below acceptable levels."

Argosy shares rose 0.6 percent to 92 cents, and have edged up 1.7 percent this year, lagging the 13 percent gain on the NZX All Index, a capital measure of domestic equities, over the same period.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

PF - Details of Interim Results Webcast
Scott Secures NZ$18 million in Global Contracts for Protein
January 14th Morning Report
AFT - NEW YEAR LETTER TO INVESTORS
TruScreen Invited to Present WHO AI Collaboration Meeting
January 13th Morning Report
January 10th Morning Report
January 9th Morning Report
FCG - Migration to NZX Main Board
FSF - Application to delist FSF from ASX has been submitted