Kermadec sells Takapuna properties

Kermadec Property Fund is selling its Berkeley cinema and retail complex in Takapuna for $7 million, which is $400,000 below the current book value.

Kermadec said it had entered an unconditional contract to sell the complex today, and as the deal was negotiated directly with the buyer it had not incurred any agency costs.

The sale would lower net gearing to about 34 percent, while net tangible assets per share would drop by 0.48c per share to about 84.5cps, Kermadec said.

Under the sale contract, settlement would be June 30, or earlier if the purchaser chose to.

Meanwhile, the sale of properties at 60 Cook At and 143 Nelson St for $7.68m had now settled.

Kermadec said it expected to maintain its current level of annual cash distributions to shareholders of 5cps.

- NZPA