17 Dec 2013

Argosy sells Auckland office building

7:38 am on 17 December 2013

Argosy Property says it has sold the commercial office building at 56 Crawley Street in Ellerslie in Auckland for nearly $10.4 million.

That was 92% of the building's book value but Argosy says the property has suffered from long-term vacancies and has provided a disappointing total return of less than 5%.

Argosy says it would have had to spend a significant amount on refurbishing the building and, given its historical difficulties in maintaining an acceptable occupancy rate, the likely return was below acceptable levels.

The company says the sale is in line with its policy of selling underperforming assets.