CDL Investments New Zealand (CDI), through its wholly-owned subsidiary CDL Land New Zealand has entered into an agreement to purchase 10.08 hectares of land located in Burnside, Christchurch for NZ$17.1 million ($13.93 million).
Listed on the New Zealand’s Exchange, CDI is a 65.5%-owned subsidiary of City Developments (CDL).
The newly acquired land is set to become part of the wider Industrial Park Precinct which will be developed into multiple industrial lots.
“This is an area which we have been scouting for some time and having completed due diligence, this purchase gives us the opportunity to expand our commercial developments to the South Island,” says CDI CEO Jason Adams.
With the land’s current zoning allowing it to be developed immediately, approximately 15 to 17 industrial lots could be created, according to Adams.
“The size of the land will give us opportunities to develop and then sell some of the lots in the next few years with the potential to retain some to add to our commercial portfolio and grow our rental income”, he adds.
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Funding for the purchase would come from retained earnings and no borrowings would be required to complete the purchase.
Settlement of the purchase is set to take place in September.
As of 4.26pm, shares in CDL are trading 7 cents higher, or 1.29% up, at $5.49.
