The Goodman Property Trust announced 2 transactions yesterday – a new industrial development at Highbrook Business Park in Auckland and the sale of a commercial building at 7 Show Place in Christchurch.
Management company Goodman (NZ) Ltd’s chief executive, John Dakin, said: “We’re executing a development-led growth strategy that’s converting the trust’s landholdings into high quality, income-producing properties. Funded through asset sales, it’s repositioning the portfolio and focusing our investment in the Auckland industrial sector.”
Goodman will develop the new 7300m² industrial facility at Highbrook for Plytech International Ltd, a manufacturer & supplier of plywood-based products, which is doubling its space requirements to facilitate its business growth.
The development has a forecast total cost of $11.4 million (construction, and excluding land allocation) and is expected to be completed in November 2018.
“This new project adds to the $107 million of development work currently underway at Highbrook. The volume of activity reflects the strong demand that exists for prime industrial space in Auckland and the unique attractions of this world-class business park,” Mr Dakin said.
The sale of 7 Show Place for $14.5 million continues the sales programme funding Goodman’s development work book. The 3-level 3037m² office building in the Show Place Office Park in Addington, has been sold to a local syndicator.
The transaction is expected to settle in January.
Mr Dakin said completion of all current developments & contracted sales would result in Goodman’s Auckland industrial weighting increasing to almost 85% of its total portfolio, while strategic landholdings represent less than 5%.
Attribution: Trust release.