Goodman (NZ) Limited, the Manager of Goodman Property Trust ("GMT" or "Trust"), is pleased to announce three new development projects, comprising two industrial facilities and an office building at Highbrook Business Park to accommodate strong customer demand.
The new commercial and industrial facilities, which have a total project cost of $28.0 million1, will add 11,140 sqm of lettable area to the Trust's investment portfolio. The additional space is expected to generate $2.2 million of annual rental once fully leased and income producing, providing an initial yield of 7.9%.
Goodman (NZ) Limiteds Chief Executive Officer, John Dakin said "A positive business environment is supporting the rapid expansion of Highbrook Business Park. With the award winning estate 100% occupied, sustained customer demand is the catalyst for these new development initiatives."
The new industrial developments include a design build facility for tool specialist Machinery House, an existing customer at Highbrook whose business growth has necessitated a doubling of its floor space to 4,600 sqm.
The second industrial facility is being developed on an uncommitted basis to meet demand. The new 3,400 sqm warehouse provides another option for mid-sized customers seeking high quality business premises.
The success of the initial development stages of The Crossing and a shortage of available office space at Highbrook have also facilitated the commencement of a new 3,140 sqm office building.
Located on a high profile site fronting Highbrook Drive, the three storey office is already attracting strong customer interest more than 18 months ahead of its expected completion.
John Dakin said "It's extremely pleasing to be commencing a subsequent stage at The Crossing, less than two years after completing the initial development. It reflects heightened levels of development activity right across the portfolio, with over $110 million of new projects announced since March 2014."
The current development workbook also includes a recent commitment from Downer EDI for a new 1,160 sqm warehouse at Connect Business Estate in Penrose. The customer will take a 15 year lease over the compact industrial facility which has a total project cost of $2.2 million.
A summary list of all the new development projects announced in FY15 is included as an appendix to this announcement.
About Goodman Property Trust:
GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation of around $1.5 billion, ranking it in the top 15 of all listed investment vehicles. The Manager of the Trust is a subsidiary of the ASX listed Goodman Group, Goodman Group are also the Trust's largest investor with a cornerstone unitholding of 17.8%.
GMT is New Zealand's leading industrial and business space provider. It has a substantial property portfolio with a value in excess of $2.1 billion that accommodates around 260 customers. The Trust holds an investment grade credit rating of BBB from Standard & Poor's
1 Total project cost includes all land allocation costs, construction costs, all professional fees and any leasing and marketing expenses.