Argosy sells Waitakere shopping centre
Increased retail competition in west Auckland and the rise of online shopping has prompted listed property fund Argosy Property to sell its Waitakere Mega Centre in Auckland.
The centre sold for its current book value of $45.75 million to a Christchurch-based investor.
The sale will reduce the weighting of retail assets in Argosy's portfolio to its target range of 15 per cent to 25 per cent.
Chief executive Peter Mence said the company was "not negative" on the retail sector but wanted to pull back on retail assets because of the "volatility" that internet retailing had introduced to physical retail.
Another key factor was the amount of new retail space that was going into west Auckland, he said.
About 140,000 squares metres was being built in the catchment, some at the new Westgate development and also in Henderson, Lincoln Rd and through Kiwi Income Property Trust's planned revamp of LynnMall.
"We have characteristically over the last few years had an equal weighting between all three sectors [office, retail and industrial]," Mence said.
The fund was now going back to a more traditional property-fund model of 40 per cent in commercial, 40 per cent industrial and 20 per cent retail.
Argosy will continue to manage the property leading up to the sale's settlement in March next year.