The funds management arm of real estate giant Multiplex has bought 11 supermarkets scattered around provincial New Zealand and in Auckland to add to the other 22 retail, office, industrial and car park properties that make up its New Zealand Property Fund.
The supermarkets were bought by Multiplex Capital for NZ$55.35 million, which was NZ$1.35 million cheaper than the NZ$56.7 million calculated in an independent valuation by Colliers International.
According to Multiplex, the fund will attract 8.14 per cent more rental income per year than what they will pay in mortgage for the properties.
Multiplex Capital managing director Ian O’Toole said the purchase of the supermarkets with their ‘blue chip tenants’ was made to increase the fund’s exposure to the retail sector, increase geographic diversification and provide investors with income security.
O’Toole sang praises for the New Zealand property market for its “property investment fundamentals” and stable political environment.
