Listed property company, Argosy has announced it submitted an interim insurance claim of $39.6 million for reinstatement works undertaken on its earthquake-damaged Wellington office block.
Argosy’s 14-level property at 7 Waterloo Quay sustained damage in the 7.5 magnitude Kaikoura earthquake in 2016. Argosy said it is working with its insurers, which it did not name, to progress a significant insurance claim in respect of the earthquake damage and loss of rents. Now, in its latest annual report, Argosy has presented details of the interim claim it lodged with insurers.
“These costs relate primarily to limited reinstatement works required to make damaged levels of the building available for reoccupation and were not able to be agreed with insurers in advance,” Argosy said. “Further claims will be made in respect of reinstatement works as costs are incurred.”
Additionally, Argosy said it submitted claims for loss of rent for the two-year period from the date of the earthquake to mid-November 2018, totalling $14.2 million. No further claims in respect of loss of rent are expected, it said.
As of March 31, Argosy had received $20.9 million (after a $4.9 million deductible) progress payments from insurers in relation to its interim claims. Argosy noted the extent and timing of any reinstatement works will be dependent on reaching an agreement with insurers.
“As with many significant insurance claims, it is uncertain when an agreement with insurers will be reached,” it said.
Argosy announced a solid full-year 2019 result with a net profit after tax of $133.7 million, compared to $98.2 million in the previous year. It reported net property income of $102.5 million, which was up 1.5% from a year ago, and includes rental loss recoveries from insurers.
