Share offer for chunk of Petone site

Last updated 14:19 22/07/2014
Petone Countdown
SHARE UP: The Petone Countdown building is on offer for syndication.

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The massive Countdown Petone building is being offered to investors as a syndication opportunity.

Investors are being asked to put in $50,000 to buy at least one of 244 parcels of 50,000 shares, valued at $1 each.

The syndication is being overseen by Maat Consulting, an Auckland-based financial services provider, trading as Petone Property Investments Ltd.

Maat has previously promoted share offers in seven commercial buildings in Auckland, Whangarei and Whakatane with a combined capital value of $70 million, it says in the prospectus.

It was attracted by the quality of long-term tenants at the Petone building, which has been valued at $22.35m.

It has been leased for 20 years expiring in 2033 by Progressive Enterprises, which owns Countdown.

The current base rent is $1.44m a year plus GST, with other tenants such as Pita Pit and St Pierre's Sushi bringing in $91,629 plus GST a year.

Maat, which will borrow an additional $10.5m to finance the buy, has predicted an 8 per cent dividend per year to shareholders.

It expects to settle the sale by August 6 and would not reveal how many people had bought share packages so far.

The property went on the market last year. It was built by Auckland-based developer Redwood Group and measures 4616 square metres across a 1.5 hectare site, with more than 200 car parks.

The supermarket was built on the former Petone West School land which was bought back by descendants of Te Ati Awa leader Te Puni who owned the land before it was taken under the Public Works Act.

They bought it for $5m in 2010 and sold it a month later to companies involved in the store development for $7.26m.

The syndication offer closes on July 30.

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- The Dominion Post

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