Roxy-Pacific Holdings yesterday (28 Sept) entered into an agreement to acquire a commercial office building in Auckland’s Central Business District for NZ$63 million (about S$62 million).
Roxy-Pacific's latest acquisition is known as NZI Centre which has 5 storeys and a basement. Photo: Google This is its second property purchase in New Zealand this year, the other one being a Grade A office building, also in the Auckland CBD, for NZ$174.0 million through a joint venture with Chip Eng Seng Corporation.
Located at 1 Fanshawe Street, the latest acquisition presents a prime investment opportunity and has potential to be a stable source of rental income for the Group.
It has a leasehold tenure until 31 December 2036, which is perpetually renewable for 20 years.
|
Stock price |
53.5 c |
|
52-week range |
41 – 56 c |
|
PE (ttm) |
15.6 |
|
Market cap |
S$621 m |
|
Shares outstanding |
1.19 billion |
|
Dividend |
1.45% |
| Year-to-date return | 15.3% |
|
Source: Bloomberg |
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Total site area is about 2,604 sq m, and net lettable area about 9,446 sq m.
It is currently fully leased to IAG New Zealand Limited, the largest insurer in New Zealand.
The purchase will be financed by internal funds and bank borrowings.
The acquisition is not expected to have a material impact on the Group’s consolidated earnings and net tangible assets per share for the current financial year ending 31 December 2017.
