Three more building projects for Goodman
Goodman (NZ) Limited, the manager of Goodman Property Trust, has announced that the trust is undertaking three new design build projects that will add 28,430 sq m of industrial space to the trust’s investment portfolio and bring to 15 the number of new developments by the trust since early 2013.
The three industrial developments, which have a combined total cost of $44.4 million including land, construction costs and all professional fees, will be funded through the trust’s existing debt facilities and a continuation of its asset disposal programme.
John Dakin, chief executive officer of Goodman (NZ) Limited, said two of the new buildings were being constructed for Steel & Tube and the third would be built for Ford.
“Steel & Tube and Ford are the latest customers to extend their property requirements with us and we are very pleased to be facilitating their business growth which reflects the continuing strong momentum of our development programme,” Dakin said.
“There has been a sustained lift in the level of development activity being undertaken by the trust over the last 18 months and we are accelerating our development programme in both Auckland and Christchurch to meet the increased demand. The 15 new projects have a combined total cost in excess of $165 million and are expected to provide a blended yield of 8.2 per cent once fully leased and income producing. It is value enhancing activity that is forecast to deliver valuation gains of between 10 per cent and 15 per cent when completed,” Dakin said.
The new building for Steel & Tube at Savill Link in Otahuhu is scheduled for completion in November of this year while the second development at Highbrook Business Park in East Tamaki is set to be finished in February 2015.
Following the completion of these projects, Steel & Tube will be Goodman Property Trust’s eighth largest customer providing around 2 per cent of its annual rental income.
Ford’s commitment is also to a new warehouse at Highbrook Business Park relocating its parts warehouse from smaller premises at the trust’s M20 Business Park in Wiri.
“This decision by Ford to relocate to a new 10,150 sq m warehouse close to its head office premises on Highbrook Drive, reinforces the park’s reputation as one of Auckland’s premier
business locations,” Dakin said. Ford’s 10 year lease is due to commence in April 2015 and features fixed review structures.