Kiwi Property agrees to conditional sale of commercial tower in Auckland for $280 mln (updated)

Kiwi Property

15/05/2024 22:32

(Adds CEO comment in paragraph 3)
       May 16 (Reuters) - New Zealand's Kiwi Property  KPG.NZ 
said on Thursday it has agreed to a conditional sale of its
commercial tower Vero Centre in Auckland to a Hong Kong-based
conglomerate for NZ$458 million ($280.30 million).
    Vero Centre, a flagship office asset in the company's
portfolio, is being sold at a discount of 1.9% to its last
year's September valuation, but at a property-level return of
11% from inception, Kiwi Property said in an exchange filing.
    "Vero Centre ... is no longer core to strategy, given the
company's focus on creating retail-led mixed-use centres," Kiwi
Property CEO Clive Mackenzie said.
    The funds raised from the sale of the commercial property
will be used to repay bank debt and for further investments, the
company added.

 ($1 = 1.6340 New Zealand dollars)

 (Reporting by Sneha Kumar in Bengaluru; Editing by Shounak
Dasgupta and Mohammed Safi Shamsi)
 ((Sneha.Kumar@thomsonreuters.com))