Kiwi Income sells Queen St building to Australian firm

Kiwi Income Property Trust, the biggest listed property investor, will sell its office building at 205 Queen Street in a two-stage deal to a company associated with privately held Brisbane-based Bloomberg Incorporation.

The trust's manager, Kiwi Income Properties, has entered into a sale and purchase agreement with Auckland City Holdings in a two-stage deal that will see the local property investor paid $47.5 million up front for 50 percent of the building, it said in a statement. The remaining tranche will be at market value in either March or September of every year up to March 2017, at the buyer's option.

Kiwi Property Management will continue to manage the property.

"This sale is consistent with our strategy of recycling capital out of mature assets to maintain balance sheet flexibility," said Chris Gudgeon, chief executive of the manager.

The building, formerly the National Bank Centre, is made up of two towers, one 17 levels and the other 22 levels, with basement parking for up to 131 cars, and has an occupancy rate of 79 percent.

Units in Kiwi Income rose 0.5 percent to $1.09, and have declined 5.7 percent this year.

Bloomberg Incorporation developed and owns Brisbane's fourth-tallest building, Riparian Tower, which is spent A$130 million building.

BusinessDesk.co.nz

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