New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<h2>Stride (SPG) Office Transactions</h2>
Stride (SPG) has announced that it has acquired the office asset at 110 Carlton Gore Rd for NZ$213m, -NZ$4.5m below the initial asking price, from Mansons. The deal was initially announced in September last year when SPG attempted to list its Fabric office portfolio. SPG has also sold four of its B-grade office assets to Mansons; 25 Teed St, 35 Teed St, 7-9 Fanshawe Ln and 80 Greys Ave will be sold slightly below book value for a combined NZ$84m. We calculate SPG’s gearing lifts to 38% on a committed basis. SPG will provide development funding for 110 Carlton Gore Rd and receive a 5% yield on funds lent to Mansons.
This transaction tidy’s up the Fabric portfolio&nbsp;metrics. Fabric is now predominantly Premium/A grade portfolio 50% weighted to Auckland with a 7.8 year WALT and &lt;10year average building age. We believe this is more attractive to potential wholesale investors than the prior portfolio with its tail of B grade assets.
110 Carlton Gore Rd
<ul>
<li>Purchase price of NZ$213m reflects an initial yield of 5.1%</li>
<li>100% occupied with a weighted average lease term (WALT) of 10.5 years</li>
<li>3% annual fixed rent reviews</li>
<li>The property is expected to be 6 Green Star and 5 star NABERSNZ rated. The property is under development with completion expected March-23</li>
</ul>
Four properties sold
<ul>
<li>25 and 35 Teed St properties are expected to settle in May-22. SPG is required to complete already identified seismic upgrades of NZ$0.75m</li>
<li>7-9 Fanshawe Ln and 80 Greys Ave are expected to settle in September-22. Fabric has agreed to lease a portion of 80 Greys ave for a period of 12 months if a current key tenant does not renew</li>
</ul>
Gearing bridge
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/267/040/original/image_52822501221649119677475.png?1649119677" class="editor-image img-responsive" data-smartkarma-image-id="267040"></figure>
Source: Forsyth Barr analysis
Office portfolio metrics
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/267/041/original/image_72265405931649119727132.png?1649119726" class="editor-image img-responsive" data-smartkarma-image-id="267041"></figure>
Source: Forsyth Barr analysis

Stride (SPG) Office Transactions
Stride (SPG) has announced that it has acquired the office asset at 110 Carlton Gore Rd for NZ$213m, -NZ$4.5m below the initial asking price, from Mansons. The deal was initially announced in September last year when SPG attempted to list its Fabric office portfolio. SPG has also sold four of its B-grade office assets to Mansons; 25 Teed St, 35 Teed St, 7-9 Fanshawe Ln and 80 Greys Ave will be sold slightly below book value for a combined NZ$84m. We calculate SPG’s gearing lifts to 38% on a committed basis. SPG will provide development funding for 110 Carlton Gore Rd and receive a 5% yield on funds lent to Mansons.
This transaction tidy’s up the Fabric portfolio&nbsp;metrics. Fabric is now predominantly Premium/A grade portfolio 50% weighted to Auckland with a 7.8 year WALT and &lt;10year average building age. We believe this is more attractive to potential wholesale investors than the prior portfolio with its tail of B grade assets.
110 Carlton Gore Rd

Purchase price of NZ$213m reflects an initial yield of 5.1%
100% occupied with a weighted average lease term (WALT) of 10.5 years
3% annual fixed rent reviews
The property is expected to be 6 Green Star and 5 star NABERSNZ rated. The property is under development with completion expected March-23

Four properties sold

25 and 35 Teed St properties are expected to settle in May-22. SPG is required to complete already identified seismic upgrades of NZ$0.75m
7-9 Fanshawe Ln and 80 Greys Ave are expected to settle in September-22. Fabric has agreed to lease a portion of 80 Greys ave for a period of 12 months if a current key tenant does not renew

Gearing bridge

Source: Forsyth Barr analysis
Office portfolio metrics

Source: Forsyth Barr analysis

Stride Property

Stride (SPG): Office Transactions