Industrial Acquisition and Development

Stride Property Group (Stride) is pleased to announce that it has entered into an unconditional agreement to acquire a 4 hectare property at 16 Wickham Street, Hamilton for a purchase price of $10 million. Settlement is expected to occur on 1 April 2020. This property consists of an area of 1.3 hectares which is tenanted, as well as an area of 2.7 hectares that Stride has agreed to redevelop as a Resource Recovery Park for Waste Management (NZ) Limited (Waste Management). The total cost of the development (excluding land costs) is estimated to be $15 million, and the property (including currently tenanted premises and the Waste Management development when completed) is expected to deliver a yield on cost of approximately 7%. The development is expected to be completed by December 2020, at which time Waste Management will take a 25 year lease of the facility. This development follows the successful completion of the new Waste Management head office development at East Tamaki Road, Auckland, which was completed in December 2019 by Stride. In addition, Stride is currently developing an industrial facility at Selwood Road, Henderson for Waste Management. It is intended that the Wickham Street property will become part of the Industre Property Joint Venture, along with the East Tamaki Road head office and Selwood Road facility. As announced in September 2019, the Industre Property Joint Venture is a joint venture between Stride Property Limited and a group of international institutional investors, through a special purpose vehicle, and advised by J.P. Morgan Asset Management. The commencement of the Industre Property Joint Venture remains conditional on Overseas Investment Office approval. Stride's Chief Executive, Philip Littlewood, commented "We are very pleased to be able to continue our successful relationship with Waste Management and assist them to develop this exceptional facility in the Waikato. This project delivers on the growth aspirations of Stride's new industrial product, Industre Property." End For further information please contact: Tim Storey, Chairman, Stride Investment Management Limited / Stride Property Limited Mobile: 021 633 089 - Email: tim.storey@strideproperty.co.nz Philip Littlewood, Chief Executive Officer, Stride Investment Management Limited Mobile: 021 230 3026 - Email: philip.littlewood@strideproperty.co.nz Jennifer Whooley, Chief Financial Officer, Stride Investment Management Limited Mobile: 021 536 406 - Email: jennifer.whooley@strideproperty.co.nz Louise Hill, General Manager Corporate Services, Stride Investment Management Limited Mobile: 0275 580 033 - Email: louise.hill@strideproperty.co.nz A Stapled Security of the Stride Property Group comprises one ordinary share in Stride Property Limited and one ordinary share in Stride Investment Management Limited. Under the terms of the constitution of each company, the shares in each can only be transferred if accompanied by a transfer of the same number of shares in the other. Stapled Securities are quoted on the NZX Main Board under the ticker code SPG. Further information is available at www.strideproperty.co.nz or at www.nzx.com/companies/SPG. End CA:00349883 For:SPG Type:GENERAL Time:2020-03-13 09:28:19