Overview

Citigroup Centre, Auckland

Origins

Argosy Property Limited (list code ARG) was listed on the New Zealand Stock Exchange (originally as Paramount Property Trust) on 3 December 2002, after a successful public offering that raised unit holders’ equity of $31,543,000. This was the first step for a new property investment vehicle with the objective of achieving steady growth in assets under management and a superior yield.

Strategy

Today, the Company’s focus is on the acquisition of quality investments and properties where value can be added or properties modernised to extend their effective useful life. The Company targets properties in strategic and popular locations, enabling low vacancy rates and good lease term profiles, and properties that provide the best prospect for rental and capital growth.

The aim of the Company is to maintain a diversified portfolio containing the broad spread of high-quality assets necessary to provide a steady and stable income return. These core properties will be complemented by others with ‘added value’ opportunities. Essentially, it is through a combination of achieving stable returns from the core assets and maximising the potential from the added value opportunities that the Company will be able to provide strong returns overall for investors. Argosy only undertakes its own developments to enhance the value and quality of property in its portfolio, or to create assets that will be held in its portfolio. In either case the benefit is realised through enhanced income returns. Wherever possible, properties held for development contribute a holding income. It follows from Argosy’s focus on income returns that it should not be considered a property developer aiming to make profits from trading in property.

Internalisation and Corporatisation

Argosy Property Trust’s unitholders approved internalisation of the Trust’s management at the annual general meeting of unitholders in August 2011.  The effect of internalisation was to completely separate the Trust from ANZ National and from One Path. This resulted in a significant improvement in earnings for the Trust.  At the 2011 AGM the Board of Directors also undertook to investigate corporatisation under which the Trust would be converted to a company, and prepare a recommendation for unit holders consideration, prior to the next AGM. The corporatisation proposal was expected to generate savings in trustee expenses, such as trustee fees and legal costs. The Manager’s corporatisation proposal was presented to unitholders and approved at an extraordinary meeting in February 2012.  Accordingly the Trust was corporatised and replaced by a new company, Argosy Property Limited, with effect from 1 March 2012.  Following corporatisation, Argosy Property Limited is on track to realise the expected corporatisation savings. 

One of the top real estate teams in the country

The Argosy team is made up of 10 experienced property professionals who are well qualified and perform at the highest level in the industry. They are supported by an equally committed and competent administration and accounting staff of 10. Argosy Property Limited has a very competitive management expense ratio compared to the other listed property investment vehicles in New Zealand.