GMT
19/09/2014 11:47
GENERAL
REL: 1147 HRS Goodman Property Trust
GENERAL: GMT: GMT Announces New Development Projects To Meet Demand
Goodman (NZ) Limited, the Manager of Goodman Property Trust ("GMT" or
"Trust"), is pleased to announce four new development projects that are being
undertaken to meet rising customer demand.
Goodman (NZ) Limited's Chief Executive Officer, John Dakin said "Ongoing
leasing success and high levels of customer enquiry continue to drive our
development programme. To meet this demand and facilitate future growth, we
are commencing new development and infrastructure projects."
The four developments, which have a total project cost of $33.4 million , are
expected to generate around $2.8 million of annual income and deliver
valuation gains of between 10% and 15% once completed.
John Dakin said "An active asset sales programme is financing this value
adding development activity and we are also pleased to be announcing the sale
of the Carter Holt Harvey Packaging Facility in Hornby, Christchurch, for
$16.37 million."
Development and leasing success
The building programme at Central Park Corporate Centre in Greenlane,
Auckland, has supported the construction of two new office buildings over the
last 24 months, providing around 11,200 sqm of high quality office
accommodation.
International insurance company, YOUI, has recently committed to a nine year
lease, over 4,600 sqm of space, in the latest office development at Central
Park. The five level facility is now over 75% leased, four months ahead of
its scheduled completion in January 2015.
The strong leasing result mirrors the success of the 5,350 sqm green star
rated building that completed in 2013. Long term commitments from Genesis
Energy and Restaurant Brands ensured this office development was fully leased
well ahead of its scheduled completion.
The positive leasing outcomes and ongoing development activity at Central
Park are the catalyst of new infrastructure projects announced today. These
projects include the refurbishment and upgrade of the childcare and gym
facilities, together with the development of a new multi-level car park
building which provides an additional 600 covered spaces.
With high occupancy levels across Central Park the infrastructure
improvements will enhance the property while facilitating future development
stages.
John Dakin said "Customer demand is strong across the portfolio and this is
reflected in our high occupancy rate of 97%. The new lease to Mainfreight at
Highbrook Business Park demonstrates the quality of our properties with this
substantial estate now fully occupied. To accommodate current demand for
industrial facilities in this location we are commencing another uncommitted
development of a similar size."
The new 5,400 sqm warehouse is of a scale and design that is expected to
appeal to a range of companies seeking high quality business accommodation.
GMT's proven development capability is also facilitating the business growth
of existing customers.
At Westney Industry Park in Mangere, DSL Logistics Limited has committed to a
3,000 sqm extension to its existing warehouse facility. The new eight year
lease over the expanded premises, which will total 7,750 sqm is complemented
by a five year lease over another adjoining facility.
John Dakin said "The new projects announced today continue the momentum in
our development programme. With the earlier design-build commitments from
Steel & Tube and Ford we have increased the volume of development activity
announced in the last six months to around $77.9 million. Based on current
demand, we expect to commence over $100 million of new projects this
financial year."
Financing growth
A buoyant investment market, with both local and offshore investors competing
for stock, means that asset sales are now the Trust's preferred source of
development funding.
John Dakin, Chief Executive Officer of Goodman (NZ) Limited, said "A growth
strategy focused on asset recycling is enhancing the portfolio and
contributing to strong investment gains for the Trust. The sale of the Carter
Holt Harvey asset means that over $45 million of disposals have been secured
already this year. It is a successful strategy that is helping fund an
increasing level of development activity."
Further disposals are planned and other properties are being actively
marketed for sale as part of the Trust's asset recycling programme.
For further information please contact:
John Dakin
Chief Executive Officer
Goodman (NZ) Limited
(09) 375 6063
(021) 321 541
Andy Eakin
Chief Financial Officer
Goodman (NZ) Limited
(09) 375 6077
(021) 305 316
End CA:00255446 For:GMT Type:GENERAL Time:2014-09-19 11:47:54
