Strategic Avondale Acquisition, Tidal Road Update

NZX and media
announcement
—
23 December 2020



STRATEGIC AVONDALE ACQUISITION, TIDAL
ROAD UPDATE
Property for Industry Limited (PFI, the Company) is pleased to announce the acquisition of the industrial
properties located at 670-680 Rosebank Road in Avondale, Auckland and wishes to provide an update
on the industrial properties to be acquired at Tidal Road in Mangere, Auckland.

Strategic Avondale Acquisition
PFI has agreed to acquire the industrial properties located at 670-680 Rosebank Road in Avondale,
Auckland. Located on a 2.8ha site, there are four buildings leased to two tenants: NZ Comfort Group
Limited and Dunlop Flooring Limited.

PFI already owns neighbouring industrial properties on Rosebank and Patiki Roads. When combined
with these sites, an industrial estate of 8.6ha valued in excess of $110 million will be created, just 250
meters from the North Western motorway system. This is a strategic acquisition that presents PFI with
a longer-term opportunity to create value by integrating the property with the Company’s existing
holdings.

The properties are fully occupied and generate an annual rent of around $1.7 million with a weighted
average lease term of over 4 years. The purchase price is $39.0 million, representing an initial return of
4.4%. The estimated market yield is 4.9%, and settlement of the acquisition will take place during the
first quarter of 2021.

Tidal Road Update
On 14 August 2019 and 17 December 2019 PFI announced agreements to purchase industrial
properties to be developed at Tidal Road in Mangere, Auckland, for a total of $54.4 million.

The agreements to acquire these properties were subject to market standard conditions, including
sunset dates. Following delays caused by the COVID-19 pandemic and associated New Zealand
Government enforced lock-downs, these sunset dates have now been reached and the agreements
have been cancelled.

Closing
PFI Chief Executive Officer Simon Woodhams noted: “In line with the update that we provided with our
interim result, we have been continuing to target acquiring quality industrial properties in sought-after
areas. Whilst it is disappointing that the planned Tidal Road acquisitions will not go ahead, the acquisition
of the properties at 670-680 Rosebank Road in Avondale is in line with our strategy and presents a
unique opportunity for PFI to increase returns and value in the long term given that we own neighbouring
sites. In the short to medium term, the property provides PFI with stable holding income from two
excellent tenants.”

ENDS

NZX and media
announcement
—
23 December 2020



ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 94 properties is leased to
147 tenants.

For further information please contact:

SIMON WOODHAMS CRAIG PEIRCE
Chief Executive Officer Chief Finance and Operating Officer
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Phone: +64 21 749 770 Phone: +64 21 248 6301
Email:
woodhams@pfi.co.nz Email: peirce@pfi.co.nz
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Property for Industry Limited
Shed 24, Prince’s Wharf, 147 Quay Street, Auckland 1010
PO Box 1147, Shortland Street, Auckland 1140
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www.propertyforindustry.co.nz