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Development for Restaurant Brands at Eastgate

28/8/2020, 8:42 am TRANSACT

NZX RELEASE28 August 2020

Development for Restaurant Brands at Eastgate

Asset Plus (NZX:APL) is pleased to announce the entry into a conditional Agreement to Lease (ATL) with Restaurant Brands Limited to construct a new building on existing bare land at Eastgate Shopping Centre, Christchurch for occupation by one of Restaurant Brands’ fast food brands on completion. Restaurant Brands will lease the 250m2 net lettable area building on a 10 year lease term from completion in 2021. The ATL is conditional on obtaining Resource Consent prior to 23 November 2020.

Asset Plus Chairman, Bruce Cotterill said: “We are delighted to announce this development with a long term lease from completion to Restaurant Brands. This development builds on the recent positive activity within the Eastgate complex, and activates the key gateway entry to the centre on land that has been underutilised to date. The development is anticipated to assist in attracting a wider customer base to Eastgate, which is expected to have positive flow on benefits for the wider centre.”

Key forecast metrics for the development include:

• Development expenditure of $1.3m (excluding already held land);
• Forecast development margin of 20%;
• Forecast yield on cost of 6%

Under the ATL, the development is required to be completed within nine months of the ATL becoming unconditional, subject to extension for usual force majeure events.

-ENDS-

For further information contact:

Mark Francis
Managing Director, Augusta Funds
Management Limited, Manager of Asset Plus
09 300 6161

Stephen Brown-Thomas, Asset Plus and Development
Manager, Augusta Funds Management Limited,
Manager of Asset Plus
09 300 6161