Precinct Properties delivers strong profit result
15 November 2018
NZX listed Precinct Properties has today announced its financial results for the 12 months ended 30 June 2018, with net profit after tax (NPAT) up 57.2 percent to $254.9 million.
The quality of Precinct’s portfolio has resulted in a significant portfolio revaluation gain of $208.7 million or 9 percent for the period. As at 30 June 2018, Precinct’s portfolio value increased to around $2.5 billion.
Precinct Properties is the largest city centre real estate owner in New Zealand and CEO Scott Pritchard says the business is committed to its long-term strategy as city centre specialists.
“The last financial year has delivered another strong result for our business. As we move forward with our strategy, we progressed a number of initiatives and achieved key milestones during the year.
“We have continued to take an active management approach with our investment portfolio and our development pipeline, leveraging Precinct’s market position.”
Scott Pritchard added, “The long-term outlook for the Auckland market remains strong, with solid demand drivers for city centre real estate across the office, retail, hotel and residential markets.”
Other Precinct Properties developments such as Wynyard Quarter and Bowen Campus in Wellington have also contributed to this growth, with works progressing well over the last 12 months.
Commercial Bay update:
Precinct’s vision and long-term commitment to the rejuvenation of the central city has been reinforced today with the announcement of a $298 million development at One Queen Street (currently HSBC House) which will include a brand-new luxury hotel operated by the InterContinental Hotels Group (IHG).
The premium waterfront development, designed to integrate seamlessly with Commercial Bay, will also comprise high quality office accommodation and unique food and beverage options including a roof-top bar.
Phase one of the Commercial Bay retail remains on schedule, with international powerhouse H&M opening its flagship 3,800 square metre store on 30 August 2018.
This marks a significant milestone for the transformational development which is reinvigorating the heart of the central city. The superb four storey retail offering promises to be the country’s premier H&M destination.
Phase two of the Commercial Bay retail and the new PwC Tower have revised estimated completion dates, following the confirmation of a completion programme from main contractor Fletcher Building. The revised completion dates are September 2019 for the Commercial Bay retail and December 2019 the new PwC Tower.
The programme provided by Fletcher Building, has been independently reviewed by Precinct’s expert programmer, RCP, who confirm the revised dates are achievable, subject to the main contractor’s performance.
“Precinct remains confident with the provisions of its construction contract, which protect the business from losses due to contractor delay”, says Scott Pritchard.
“While any delay in a project is disappointing, we believe Fletchers are maintaining a very high standard of quality during a very challenging period within the construction industry.”
Precinct continues to work closely with retailers at Commercial Bay to communicate the revised occupation dates. For those occupiers coming into the new PwC office tower, all have lease terms which extend beyond the revised completion dates of the office tower.
Commercial Bay continues to achieve a good level of leasing enquiry and Precinct has secured several additional occupiers, advancing retail commitments to 76 percent and office commitments to 78 percent.
The world-class $1 billion Commercial Bay waterfront development and lifestyle district is destined to become Auckland’s newest, shopping, dining and social hub, offering a vast range of food and beverage outlets.
The last financial year has delivered another strong result for our business. As we move forward with our strategy, we progressed a number of initiatives and achieved key milestones during the year.
CEO, Precinct Properties