Precinct Properties has entered into an agreement to sell its 50 percent share of Auckland's ANZ Centre for $177 million, in a deal it says is consistent with its policy of selling older buildings and in line with its latest valuation of the Albert St building.
The 30-year old, 39-level office block underwent a $76 million refurbishment in 2013, and was valued at $355.6 million last June, valuing Precinct's share at $177.8 million. While chief executive Scott Pritchard didn't disclose who the buyer was, the deal follows the sale of 50 percent in the building to a fund controlled by US investment group Invesco in mid-2018 for $181 million.
Precinct also reported revaluation gains on its properties of approximately $149 million, or 5.1 percent, in the final six months of 2020. That pushed the value of its central Auckland and Wellington-based portfolio to $3.1 billion.
It attributed the growth to a "material compression" in capitalisation rates, with a weighted average capitalisation rate firming by about 40 basis points to 4.9 percent over the half year. The sale of ANZ Centre is subject to Overseas Investment Office approval.
