Listed landlord Kermadec Property Fund has sold a Henderson building for more than $8 million and bought a Takapuna multiplex cinema and restaurant property for a similar figure.
Mark Francis, Kermadec's managing director, said the North Shore property had better growth prospects.
Kermadec, a $127 million fund, soldthe Department of Courts Building in Henderson for $8.3 million, just above its book value of $8.1 million.
It bought Barrie Everard's Berkeley Cinema Group building in the heart of Takapuna for $8.1 million.
This four-cinema property on Anzac Ave has a restaurant in the ground floor and is leased to the cinema chain for eight years.
Francis said analysts had begun to cover Kermadec as the fund grew and he was looking to buy more properties.
Kermadec floated last year, issuing shares at $1 each and raising $61.25 million for the public to buy properties.
The company was trading yesterday at $1.01.
Last month, Kermadec paid $20.5 million for a 16-level office block at 7 City Rd on the fringe of Auckland's CBD.
Jeremy Simpson, analyst at Forsyth Barr, recommended accumulating Kermadec shares and put a valuation of $1.20 on the stock.
Stephen Freundlich, analyst at UBS Investment Research, gave Kermadec a neutral rating but said its small size could be an advantage.
Acquisitions had the ability to push up returns and he approved of the City Rd building purchase.
It was important that management "get good early runs on the board". The $20.5 million purchase appeared to be a good start, he said.
He also approved of Kermadec's largest property, the Finance Centre Carpark in Auckland's CBD, which comprises a quarter of the portfolio value.
The carpark was a low-risk asset. The property had a good track record and was also in an ideal location, he said.
