In a statement to the NZX, the mall’s owner Kiwi Property Group said the sale was part of its ongoing strategy to focus on the development of mixed-use town centres.
MP Holdings 5 is managed by Mackersy Property, the Queenstown-based property and investment business which also has offices in Dunedin, Christchurch, Hamilton and Tauranga.
A statement last week announcing the appointment of Hamish Wilton as chief executive said it managed 202 commercial properties for syndicated ownership entities and private owners, and 465 tenants nationwide on behalf of more than 2600 investors. It had more than $2.15 billion of assets under management.
Kiwi Property said the final sale price of Northlands represented a property level internal rate of return of 10.9% since inception.
Mackersy would retain $9 million to complete seismic works; Kiwi Property had about $32 million of Northlands seismic insurance proceeds that remained unspent.
The transaction was subject to two conditions: the landlord’s consent to the transfer of a ground lease over part of the car park and approval by the Kiwi Property board.
The sale was expected to settle on or before November 30. Kiwi Property would continue to manage Northlands on Mackersy’s behalf and has also agreed to provide vendor finance of up to $75 million to settle the purchase, if required.
Kiwi Property chief executive Clive Mackenzie said the sale of Northlands was an important step in its capital recycling programme.
Proceeds from the transaction would be used to fund the company’s "exciting" mixed-use development pipeline and provide further balance sheet flexibility.
