Roxy-Pacific unit to pay $62m for NZ office building

Roxy-Pacific told the Singapore Exchange: "The board believes the property presents a prime investment opportunity and has potential to be a stable source of rental income for the group."
Roxy-Pacific told the Singapore Exchange: "The board believes the property presents a prime investment opportunity and has potential to be a stable source of rental income for the group." PHOTO: ST FILE

A subsidiary of Singapore-listed Roxy-Pacific Holdings - Roxy-Pacific NZI - will pay NZ$63 million (S$61.8 million) for an office building in Auckland, New Zealand.

NZI Centre is a five-storey block in the central business district with a lease that runs until 2036.

Roxy-Pacific told the Singapore Exchange: "The board believes the property presents a prime investment opportunity and has potential to be a stable source of rental income for the group."

NZI Centre, developed by New Zealand's Newcrest Group and completed in 2009, is fully leased to leading insurer IAG New Zealand. The net passing income of the building, which has a net lettable area of 101,676 sq ft, is about NZ$5 million a year, marketing agent Colliers International said.

Roxy-Pacific first jumped into New Zealand's office sector in August when it snapped up another prime Auckland property for NZ$174 million.

That transaction, for two office towers and one retail tower on the Queen Street thoroughfare, was made in a 50-50 split with a unit of Singapore's Chip Eng Seng.

Annabeth Leow

A version of this article appeared in the print edition of The Straits Times on October 02, 2017, with the headline 'Roxy-Pacific unit to pay $62m for NZ office building'. Print Edition | Subscribe