Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” or “Trust”), is pleased to announce recent development commitments totalling $11.4 million.
The largest of the new projects is a tailored office and warehouse solution to be built for Trio Group at Highbrook Business Park in Auckland. The print management and logistics specialists will take an eight year lease over the 3,500 sqm facility. The lease agreement reflects current market rentals and includes a fixed annual review mechanism, together with expansion rights over adjoining land.
The Trust has also secured a further commitment from Bridgestone at M20 Business Park in Wiri. The new 2,200 sqm manufacturing and storage facility will adjoin the existing 4,900 sqm distribution warehouse completed for the tyre distributor in 2011.
Bridgestone have committed to a 12 year lease over the new facility which incorporates fixed rent reviews together with future expansion options and further rights of renewal.
Scheduled to complete in February 2014 and November 2013 respectively these two new development projects have a combined total project cost of $10.3 million (including land, construction costs and all professional fees).
Goodman (NZ) Limited's Chief Executive Officer, John Dakin said “A strengthening economy and improving business confidence are reflected in the current levels of customer enquiry with over $80 million of new development projects commencing in the last 12 months. Secured by long term leases to successful companies these projects enhance the overall quality and value of the portfolio. They also contribute to a growing rental stream, delivering superior yields on cost that average around 8.7%.”
GMT is also undertaking expansion works in Christchurch with a new 1,800 sqm warehouse being built for Carter Holt Harvey at its 20,541 sqm packaging facility in Hornby for a total cost of $1.1 million. The customer is extending their existing lease for a further 6 years, to August 2022, as part of the agreement.