GMT Viaduct Joint Venture Makes Strategic Acquisition | New Zealand
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GMT Viaduct Joint Venture Makes Strategic Acquisition

Friday, 27 March 2015

Goodman (NZ) Limited,  the Manager of Goodman Property Trust (“Trust” or “GMT”), has announced that  Wynyard Precinct Holdings Limited has conditionally agreed to acquire  the new office building being developed for Datacom in Auckland’s Viaduct Quarter for $86.2 million.

Keith Smith, Chairman of Goodman (NZ) Limited said:  “The viaduct joint venture is delivering on its strategy, investing in high  quality office property in Auckland’s fastest growing commercial precinct. It’s  another positive acquisition for GMT, enhancing and diversifying the wider  portfolio.”

Located on the corner of  Gaunt and Daldy Streets, and adjoining the planned linear park that will link  Victoria Park to the Wynyard Quarter, the 16,735 sqm development will be  purchased from Fletcher Building on completion in March 2017.

John Dakin, Chief Executive Officer of Goodman (NZ)  Limited said: “Neighbouring our existing Viaduct assets and in an area of  substantial private and public development it’s a compelling investment  opportunity that was facilitated through Goodman’s relationship with Fletcher  Building.”

The office facility, which provides 15,328 sqm of commercial  area, 1,407sqm of retail space and 152 car parks, will offer the latest in high  quality business accommodation. Featuring large flexible floor plates and  incorporating sustainable architectural elements and energy efficient building  systems the property is designed to a five green star rating.

Datacom, an established and successful IT service  provider, will consolidate its Auckland operations into the new office  facility. The privately owned local business has committed to a 15 year lease across  five floors of the new building, representing around 80% of the total rentable  area.

With the uncommitted space providing a further  value-add opportunity the acquisition is expected to provide a yield on cost of  around 8.5% once fully leased and income producing. The estimated value, once  fully leased, is forecast to be $90 million.

To facilitate the  acquisition of the completed building by Wynyard Precinct Holdings Limited, GMT  has entered into a development funding arrangement with Fletcher Building  whereby GMT funds the construction of the building until settlement.

There are no fees  being paid to Goodman Group by the joint venture or GMT as part of the  purchase. However, Fletcher Building have separately engaged Goodman Group to  provide development management services on the project.

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 $2.0 billion that accommodates around 250  customers. The Trust holds an investment grade credit rating of BBB from  Standard & Poor’s, with its debt facilities rated at BBB+.
1The joint venture  entity between Goodman Property Trust (“GMT”) and Singapore’s sovereign wealth  fund (“GIC”) that is investing in Auckland’s Viaduct Quarter. GMT has a 51%  interest in the entity with GIC owning the remaining 49%.