Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” or “Trust”), is pleased to announce further progress at Highbrook Business Park with the commencement of four new development projects.
The developments have a combined total project cost of $23.7 million (including land, construction costs and all professional fees) and will add an additional 13,915 sqm of industrial space to the Trust’s investment portfolio.
With a blended yield of 8.4%, the facilities are expected to generate around $2.0 million of annual rental income once completed and fully income producing.
Goodman (NZ) Limited's Chief Executive Officer, John Dakin said “It is encouraging to see a strong lift in customer enquiry and we’re accelerating our development programme to meet demand for new facilities across all our estates. Existing customers are also seeking expansion options as their businesses grow. These new projects at Highbrook reflect our strong customer relationships and reinforce the park’s reputation as one of Auckland’s premier business locations.”
The largest of the new projects is a 7,793 sqm expansion for existing customer, Viridian Glass Limited. Completion of the new warehouse and office facility is timed for December 2015, with the customer paying ground rental on the 16,596 sqm site until the expansion is completed. The enlarged facility, which also features extensive yard and hardstand areas, will incorporate a new 15 year lease that extends the current term out until 2030.
Two further expansion projects, encompassing 4,660 sqm of warehouse and office areas, are underway for Contract Logistics and Big Chill Distribution. These customers already occupy more than 10,000 sqm of space at Highbrook Business Park and hold expansion rights over adjoining land.
Scheduled to complete in June 2014 and February 2014 respectively, these two projects have a total project cost of $7.1 million.
Both customers are extending their current leases as part of the expansion agreements, with the expiry for Contract Logistics now June 2020, while the Big Chill lease extends out to February 2029.
GMT is also reconfiguring the 6,429 sqm warehouse and office facility on Sir Woolf Fisher Drive occupied by The Just Group. The existing building is being extended to 7,891 sqm and configured as a multi-unit facility with a moveable inter-tenancy wall to provide increased leasing flexibility.
With two separate road access points the expansion allows better utilisation of the existing site and provides The Just Group with 5,145 sqm of space tailored to its current requirements. The new adjoining unit will offer 2,746 sqm of predominantly warehouse area that is expected to lease quickly due to the limited vacancy and strong demand at Highbrook Business Park.
About Goodman Property Trust:
GMT is New Zealand’s leading industrial and business space provider. It has a substantial property portfolio, with a value in excess of $2.0 billion, that accommodates more than 250 customers.
It is a high quality business with an investment grade credit rating of BBB from Standard
GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation in excess of $1.2 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