Property giant sells up to shift priorities

By ANNE GIBSON

Trans Tasman Properties has sold $30 million worth of real estate in Auckland and Christchurch to an Auckland developer in a move that could indicate an imminent start to its planned $100 million downtown skyscraper.

All the properties went to Greg Wilkinson's Axis Property Group.

Trans Tasman is one of New Zealand's largest listed property companies, with assets of around $1.3 billion.

Money from the sales would be used to retire debt, which general manager Bruce Catley said yesterday stood at around $300 million.

Trans Tasman is expected to announce any day that it will start building a 30-storey tower on its strategic site spanning Fort and Shortland Sts.

Executive chairman Don Fletcher said in the announcement of the property sales that as the company continued to maintain considerable cash reserves to finance future investment activity, the proceeds of the sale would be used to retire debt.

The six properties sold to Axis are:

115 Queen St, former NZI Bank House, an 11-storey strata-titled office building on the corner of Queen and Swanson St and Swanson Lane, opposite the BNZ Tower. Built in the early 1980s, 115 Queen St was one of the buildings owned by the former Robt Jones Investments, which bought it in 1986 for $6.5 million from NZI. Its retail tenants include Burger King, a copy centre and internet cafe.

91-95 Mt Eden Rd, formerly the Whitcoulls building, at the city end of Mt Eden Rd. The property includes an office block, which is empty, and three warehouses, of which two are tenanted. The property runs back to Shaddock St.

The Fujitsu Centre, an office building at 117 Khyber Pass Rd, near the intersection of Khyber Pass Rd and Grafton Rd.

The Shades Atrium in Christchurch's Cashel St Mall.

Shades II, adjoining the Shades Atrium.

The Old Weekly Press building, an historic property adjoining Shades II.

The Christchurch properties are in the centre of the city's shopping precinct and include major retailers.

Trans Tasman is expected to announce soon that it has signed Simpson Grierson as an anchor tenant for its new office block in Auckland.

Before this latest sale of non-core assets Trans Tasman had realised $45 million from sales during the past two years.

Its New Zealand portfolio has suffered a loss in value, with writedowns of $25 million on its portfolio here coming on top of a $10 million writedown last year.

The site at 28 Shortland St is not the only development Trans Tasman has in the wings.

The company also bought the leasehold to a significant slice of Viaduct Harbour land recently.

It plans to redevelop two large tracts between Halsey St and Beaumont St, with frontages to Fanshawe and Gaunt Sts.