Sale of Heinz Wattie�s Distribution Centre, Hastings
Asset Plus Limited is pleased to announce the sale of the Heinz Wattie�s Distribution Centre in Hastings at its current book value of $29.1 million, consistent with its strategy to divest properties which are no longer considered as �core�.
As disclosed with the FY19 results announcement, an off-market approach was received to acquire the property and a period of exclusivity was granted for due diligence to be completed. Following the purchaser�s due diligence, an unconditional binding sale and purchase agreement has now been signed with the purchaser, E+O Property Syndication Limited.
The purchaser will syndicate the property and Asset Plus has agreed to underwrite the $16.25 million of equity that will be raised for a fee of $487,500. Settlement of the sale will take place on 17 December 2019.
Following the sale, earnings are expected to drop on an annualised basis to 3.35 cents per share and gearing to 26%. The earnings impact excludes the effect of the one-off underwrite fee which is expected to offset the lost rental income for the remainder of the financial year. The reduction in gearing creates additional balance sheet capability to support future acquisitions and the development of 35 Graham Street.
For further information please contact:
Chairman, Asset Plus Ltd
021 668 881
Managing Director, Augusta Funds Management Ltd, Manager of Asset Plus
09 300 6161
Chief Operating Officer, Augusta Funds Management Ltd, Manager of Asset Plus
09 358 7933