PFI’s $33m sale reflects strong investor demand
The price achieved by 229 Dairy Flat Highway, Albany, was $5m greater than the property’s most recent valuation. Photo / Supplied
The $33 million sale of a substantial mixed-use complex in Albany highlights strong demand for premium North Shore property investments, say the Colliers International agents who brokered the deal.
Listed entity Property for Industry (PFI) this week announced to the NZX that it had divested of 229 Dairy Flat Highway, Albany, Auckland, to a private investor.
The deal was transacted by Directors Shoneet Chand and Matt Prentice of Colliers International North Shore.
Chand says they were pleased to have achieved a sale price that was $5m greater than the property’s most recent valuation of $28m in December 2018.
“This substantial transaction shows there is still huge investor appetite at the top end of the North Shore market,” says Chand.
“While many of the biggest deals on the North Shore this year have taken place off market, we’re pleased that PFI entrusted us to bring the property to the market via a deadline private treaty campaign.
“We fielded very good enquiry and we’re thrilled to have achieved a yield of 5.78 per cent for the vendor.”
PFI has stated that the divestment follows the completion of a number of asset management initiatives at the property and is the first of a series of planned divestments of PFI’s non-industrial properties.
“In keeping with PFI’s strategy, the funds from this sale will be reinvested into quality industrial properties in sought-after areas, and value-add strategies within the existing portfolio,” says PFI Chief Executive Officer Simon Woodhams.
Prentice says the property comprises four separate buildings on a large 1.04ha freehold site with 156 car parks.
“The fully leased property is anchored by Massey University, Auckland Council and a Quest serviced apartment hotel.
“Together, the anchors contribute 97 per cent of the property’s income of more than $1.9m in net annual rent.
“The leases have a weighted average term of 10 years, making the property an excellent long-term investment proposition.”
The property has a mix of purpose-built and repositioned buildings with a combined lettable area of 6,736.5sq m.
The newest addition is the four-level Quest hotel building, which comprises 38 studio and two-bedroom units.
The buildings sit on a large site in the heart of Albany Village, with favourable Business Local Centre zoning providing future development upside in a high-growth Auckland location.
Albany has been prioritised by Auckland Council for intensive development and growth, with a number of major new residential developments underway.
The property is easily accessible via the Albany Expressway to the west and the nearby Northern Motorway, putting it within 19km of Auckland’s CBD.
It is also within easy walking distance of New Zealand’s fourth largest shopping centre, Westfield Albany.
Vendor PFI is a property investment company that has been listed on the NZX since 1994. It has more than 5,000 shareholders and a portfolio of 94 properties valued at over $1.3 billion dollars.
Settlement is scheduled to take place in early December 2019.