New Development Projects To Meet Demand

New Development Projects To Meet Demand

Goodman Property Trust has announced that it is undertaking four new development projects to meet rising customer demand.

Chief Executive Officer, John Dakin said “Ongoing leasing success and high levels of customer enquiry continue to drive our development programme. To meet this demand and facilitate future growth, we are commencing new industrial and infrastructure projects.”

The developments, which have a total project cost of $33.4 million[1], are expected to add $2.8 million of annual income to the Trust’s portfolio.

Development and leasing success

The building programme at Central Park Corporate Centre in Auckland’s Greenlane office corridor has supported the construction of two new office buildings over the last 24 months. These new buildings will add around 11,200 sqm of high quality office accommodation to the $170 million office park.

In the latest office development, international insurance company YOUI has just committed to a new nine year lease over 4,600 sqm of space. The 5 level campus style facility is now 80% leased, 4 months ahead of its scheduled completion in January 2015.

The strong leasing result mirrors the success of the 5,350 sqm building that completed in 2013. Long term commitments from Genesis Energy and Restaurant Brands ensured this green star rated office development was fully leased well ahead of its scheduled completion.

The positive leasing outcomes and ongoing development activity at Central Park are the catalyst of new infrastructure projects that include the refurbishment of the childcare and gym facilities, together with the development of a new multi-level carpark building (providing an additional 600 covered spaces).

John Dakin said “Customer demand is strong across the portfolio and the new lease to Mainfreight at Highbrook Business Park, in Auckland’s east Tamaki, means this substantial estate is now fully occupied. To facilitate the demand for industrial facilities in this location we are undertaking another uncommitted development of a similar size.”

The new 5,400 sqm warehouse is of a scale and design that is expected to appeal to a range of companies seeking high quality space in one of Auckland best business locations.

The Trust’s proven development capability is also facilitating the growth of existing business customers.

At Westney Industry Park in Mangere, DSL Logistics Limited has committed to a 3,000 sqm extension to its existing warehouse facility. The new eight year lease over the expanded premises (totalling 7,750 sqm) is complemented by a five year lease over another, adjoining facility.

John Dakin said “These new projects demonstrate the real momentum in our development programme. With the earlier design-build commitments from Steel & Tube and Ford we have increased the volume of development activity announced in the last six months to around $80 million. Based on current demand we expect to commence over $100 million of new projects this financial year.”

Financing growth

A buoyant investment market, with both local and offshore investors competing for stock, means that asset sales are now the Trust’s preferred source of development funding.

John Dakin, Chief Executive Officer of Goodman (NZ) Limited, said “A growth strategy focused on asset recycling is enhancing the portfolio and contributing to strong investment gains for the Trust. The sale of the Carter Holt Harvey packaging facility announced today means that over $45 million of disposals have been achieved already this year. It is a successful programme that is helping fund an increasing level of development activity driven by a sustained lift in customer demand.”

Further disposals are planned and other properties are being actively marketed for sale as part of the Trust’s asset recycling programme.

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