Property for Industry says the value of its portfolio has risen by 5.5 percent and that it has sold a Wellington property that had asbestos and earthquake issues.

The company began the year with 92 properties valued at $1.21 billion and bought two more through the year for a total of $28 million.

Capital spending and property-related prepayments totalled $16 million and, together with the $69 million valuation uplift, takes the portfolio’s expected value to $1.32 billion.

The valuations were done by CBRE, Colliers International, Jones Lang LaSalle and Savills.

“A key driver of the valuation outcome was the successful leasing of more than 82,000 square-metres of space representing about 11 percent of PFI’s existing portfolio during the year,” the company says.

It has secured 22 new and existing tenants for an average term of 6.1 years. More than 85 percent of the contract rent secured was a result of 17 lease renewals for an average term of 5.7 years.

Five leases secured with new tenants were for an average 8.9-year term.

“PFI is also close to securing a new tenant at the company’s Carlaw Park property in Parnell. The company expects to conclude documentation of a six-year lease over 2,229 square-metres of space prior to the end of the year, representing 60 percent of the vacant space at the property.”

PFI has also sold its property at 50 Parkside Road in Wellington for a gross price of $3.4 million to a private investor. Settlement is scheduled for Jan. 23, 2019.

That property had a $3.72 million book value but the building has both asbestos issues and needs earthquake strengthening.

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