St Lukes Group announces the purchase of Queensgate Shopping Centre

07 April 1999

Countries: New Zealand

St Lukes Group Limited has strengthened its Wellington presenceby purchasing Queensgate Shopping Centre in Lower Hutt from RetailHoldings Ltd. Subject to OIC approval, the purchase of the Centreand adjacent properties for $135 million is expected to befinalised by 30 April 1999.

“The addition of the Queensgate Shopping Centre is an excitingand strategic expansion for St Lukes Group”, said Mr Victor HoogAntink, Chief Executive.

“Queensgate provides important asset diversification, increasingour Wellington portfolio weighting from 3% to 12% and is consistentwith our objective of owning prominent centres in major regionallocations”.

The centre, which will be managed by Westfield New Zealand,comprises a shopping centre of 19,000 m2, two office buildings of9,500 m2 and substantial adjacent land which is suitable forfurther development of the shopping centre.

“With population in the trade area of approximately 340,000 anda retail market of approximately $2.5 billion, the demographicsensure the appropriate critical mass for the development of a trueregional shopping centre and make the purchase a very attractiveaddition to the assets of St Lukes Group Limited”.

“The purchase, which was based on a valuation yield of 8.5% plusextra land and which represents an increase in Company assets of16%, will be funded by bank debt from the company’s existingbankers ” said Mr Hoog Antink.

Commenting on the purchase, Retail Holdings General ManagerDarryl Henry said “St Lukes Group Limited was the perfectorganisation to complete the planned expansion of Queensgate”.

“We are delighted that they have recognised the value andpotential of Queensgate which we believe will be a star performerin St Lukes enlarged portfolio,” said Mr Henry.

Mr Henry also paid tribute to Hutt City Council and its recentinitiatives to integrate retail activity in the Lower Hutt CBD.

“We would not have continued to develop Queensgate to itscurrent size had we not received considerable encouragement andsupport from Hutt City Councillors both past and present,particularly the current Mayor, Mr Terris.”

Contact: Victor P Hoog Antink
Chief Executive Officer
St Lukes Group
Ph: 300 5420
Fax: 300 5429