Carter Holt Harvey's head office in Manukau has been sold to Australia's Valad Property Group, which is buying A$277.3 million of property from Carter Holt.
The 8.5ha site, legendary for once having a nine-hole golf course used by Carter Holt executives, is the jewel in the collection ofproperties sold. It is the biggest of five development sites being purchased.
Billionaire Graeme Hart, Carter Holt's owner, is not commenting on the transaction.
Mark Frinsdorf, Valad's head of capital transactions, said sale and leaseback agreements would operate on most of the properties but the head office property was earmarked for development by Valad.
He said no decisions had been made on what to build on the site, but a high-tech business park or a bulky goods/office precinct were possibilities.
Valad had looked at the Lion Nathan brewery site sold in Auckland last week but had decided on the deal announced yesterday.
"We do think it is a very strategic site," Frinsdorf said.
The portfolio purchased includes 15 Carters building supplies sites, which are subject to nine-year sale and lease-back agreements with two six-year rights of renewal.
Similar terms apply to 10 packaging plants in the deal, five of which are in Australia. Valad will earn a yield of 7.1 per cent on the properties.
The company already owns buildings in New Zealand, including Maritime Towers in Wellington and West Plaza in Auckland.
