Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” or “Trust”), is pleased to announce further progress in the Trust’s development programme with the commencement of four new industrial projects in Auckland.
The developments, which have a combined total project cost of $45.8 million , will add an additional 27,112 sqm of rentable area to the Trust’s investment portfolio and are expected to generate around $3.4 million of annual rental income.
Goodman (NZ) Limited's Chief Executive Officer, John Dakin said “Strong property fundamentals and continuing customer demand is allowing us to accelerate our development programme. With new businesses choosing to locate to design built premises at our estates and existing customers exercising expansion options, we are targeting $100 million to $150 million of new development projects annually.”
The largest of the new projects is a new manufacturing and warehouse facility for Orora Packaging (New Zealand) Limited, at M20 Business Park.
The Trust is also commencing a new 3,300 sqm warehouse, neighboring the Orora development. With limited vacancy and strong demand in Wiri, the uncommitted facility provides much needed capacity for customers seeking high quality space that offers direct access to both SH1 and SH20.
Scheduled to complete in October 2016, these two new developments have a combined total project cost of $26.9 million.
Existing customer partnerships have also facilitated two new warehouse projects at the Trust’s Highbrook Business Park and Savill Link estates.
The CSR Viridian expansion at Highbrook, which was initially announced in 2013 with a deferred start, has increased in size by around 30% from its initial specification to 10,486 sqm. The enlarged factory warehouse will total over 18,000 sqm once completed and will feature extensive yard and hardstand areas.
Holden (New Zealand) Limited has also committed to a 2,002 sqm warehouse expansion that utilises the full site area at its distribution centre in Savill Link, Otahuhu.
Scheduled to complete in March 2016 and May 2016 respectively, these two projects have a total cost of $18.9 million. Both customers are extending their current leases as part of the expansion agreements, with the expiry for CSR Viridian now 2031, while the Holden lease extends out to 2022.
1 including land, construction costs and all professional fees
About Goodman Property Trust:
GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation of around $1.4 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 of $2.1 billion that accommodates around 250 customers. The Trust holds an investment grade credit rating of BBB from Standard & Poor's.