Stride sells Silverdale Centre, amends Investore management agreement

Stride Property Limited (SPL) has entered into a conditional agreement to sell the Silverdale Centre to Investore Property Limited for NZ$114 million, representing a 6.8% yield and 20% capital growth since March 2020. The sale is conditional on Investore shareholder approval at a special meeting on October 20, 2025. Upon settlement, Investore's portfolio will reach NZ$1.1 billion, and Stride's external assets under management will total approximately NZ$2.3 billion. SPL will not participate in Investore's NZ$62.5 million convertible notes offer.

Stride Investment Management Limited (SIML) has also agreed to proposed amendments to Investore's management agreement. These changes include expanding Investore's mandate to convenience-based retail properties, revising the building management fee structure, and allowing Investore to determine LVR and hedging policies. These amendments aim to support Investore's strategic growth and are subject to Investore shareholder approval, though not conditional on the Silverdale Centre acquisition.

SPL will also undertake seismic strengthening works for the Silverdale Centre up to a maximum cost of NZ$800,000, or reimburse Investore for the works, with an estimated cost of NZ$750,000. The net proceeds from the sale will reduce SPL's bank debt, with its pro forma LVR expected to fall from 39% to 32% as of March 31, 2025.