Goodman (NZ) Limited, the Manager of Goodman Property Trust ("GMT" or "Trust"), is pleased to announce the commencement of three new industrial developments with a total project cost of $32.38 million.
The three projects, which are being developed on an uncommitted basis, are expected to generate around $2.2 million of annual rental income once fully leased and income producing.
Goodman (NZ) Limited's Chief Executive Officer, John Dakin said "Historically low vacancy levels are supporting a heightened level of development activity across all our Auckland estates. With GMT's industrial portfolio recording an occupancy rate of over 99% these three projects complement the existing development programme, ensuring the Trust has the capacity to meet new demand."
The new warehouse developments include:
+ The Hill, a 7,500 sqm facility located at the end of Pukekiwiriki Place at Highbrook Business Park in East Tamaki.
+ The Point, a 2,820 sqm facility located at the end of Waiouru Road also at Highbrook Business Park.
+ The Gate, a 4,930 sqm facility located on Church Street, beside the Recall facility at The Gate Industry Park in Penrose.
Commencing a small number of new projects without a customer commitment has been a successful strategy for the Trust with the previous two developments at Highbrook Business Park leased to GWA and Synnex well ahead of completion. These facilities, which are similarly sized to the projects announced today, are expected to record valuation gains of around 20% at 31 March 2016.
John Dakin said "More than 70% of new developments announced by the Trust over the last 12 months have been design built projects undertaken on a pre-committed basis. These three new facilities provide customers seeking high quality business premises with another leasing option. They are of a size and design that is likely to appeal to a wide range of occupiers and we expect them to lease quickly."
A schedule listing the 12 development projects announced by GMT over the last 12 months is attached as an appendix to this announcement.