What's in a name - NPT becomes Asset Plus

Wednesday, 4 July 2018

Asset Plus has sold the AA Centre in Auckland to SkyCity for $47m.

Originally it was National Property Trust, then it was NPT - now it's Asset Plus.

The latest brand refresh comes as the Christchurch-based Stock Exchange-listed company comes under the management of Auckland-based Augusta Capital, also NZX-listed.

Bruce Cotterill is the new chairman of rebranded Asset Plus, formerly NPT, formerly National Property Trust.

Augusta recently offered shareholders a new direction after several years of disappointing returns from Asset Plus, the smallest listed property company.

Since taking over, Augusta and the new directors at Asset Plus have initiated asset sales including 17 Print Place, Christchurch for $8 million to a company called Whatever It Takes 2003, and owned by Dunedin developer Carl Angus. Asset Plus booked a loss of $2.97 million on the sale.

* Shareholders Association swings in behind NPT directors**

The next sale from the shrinking asset base will be the AA Centre at 99 Albert St, central Auckland to SkyCity Entertainment Group for $47m and due to be settled this month.

This will leave Asset Plus with just three assets - a large $27m Heinz Wattie's distribution centre in Hastings, the $36m Stoddard Shopping Centre in Mt Roskill in Auckland, and the $59m Eastgate Shopping Centre in Christchurch.

Eastgate was the core property of the company when it was floated in the 1990s but it failed to return expected profits and other properties were bought into the portfolio.

Eastgate lost an anchor tenant after the 2011 earthquakes and Asset Plus has worked to sign up new tenants with a more social and health focus to suit the Linwood catchment.

The new chairman of Asset Plus, Bruce Cotterill, recently reported how Augusta had undertaken a comprehensive review 'to understand how the brand was viewed by its shareholders, and factoring its sub-standard historic performance'.

'It was agreed the brand identity was tired and lacking a legacy to take into the future,' Cotterill said.

'In collaboration with Augusta, our board have now identified a defined value add strategy. We believe this strategy differentiates Asset Plus from the sector and provides a framework for relative outperformance'.

'The company will invest in assets, and recycle capital out of existing assets, that are attractive based on property, demographic, business and economic trends and which provide diversification.'

A brand launch video can be found of the company's web site.

The most recent annual result for the year ended March 2018 showed declining asset values and a net profit after tax of $3m, thanks to the $4.5m that Augusta paid Asset Plus to take over the management contract and booked as income in the accounts.

Tangible asset backing was 70 cents a share but the shares are trading at about 58c each, reflecting the sentiment of shareholders.