GMT Progresses Central Park Sale and Renews Air NZ Lease

GMT Progresses Central Park Sale and Renews Air NZ Lease

16 November 2017

Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” and “Trust”) is pleased to announce the sale of Central Park is now unconditional but for Overseas Investment Office approval. The Trust has also secured a significant new lease commitment from Air New Zealand.

John Dakin, Chief Executive Officer of Goodman (NZ) Limited said, “The $209.0 million Central Park sale has progressed with the purchaser, a joint venture led by New Zealand property fund manager Oyster Group, confirming the only remaining condition is Overseas Investment Office approval.”

The disposal represents a significant milestone in the repositioning of the Trust, marking the last of the major identified asset sales. Following settlement of the property, GMT’s portfolio will be almost 90% invested in its preferred Auckland industrial sector and will have a value of $2.4 billion.

John Dakin said, “With over $850 million of asset sales since 2012 we have positively rebalanced the Trust’s portfolio, improving the quality and growth profile of the assets. It’s a disciplined strategy that is focused on the delivery of the industrial development pipeline and building a portfolio of unrivalled quality.”

GMT's office investment is now focused in the VXV Precinct of Auckland's Wynyard Quarter. The portfolio of seven buildings is owned jointly with GIC, the sovereign wealth fund of Singapore, and has a current value of $488.4 million (GMT’s proportionate share being $249.1 million). It includes some of the best new office buildings in the city with strong customer covenants from leading organisations such as Auckland Transport, Bayleys, Datacom, Fonterra, HP, IBM, KPMG and Microsoft.

Air New Zealand, a key customer in the precinct, has agreed to renew its lease at 185 Fanshawe Street, extending the expiry to 2027. As a result, the VXV portfolio will have a weighted average lease term of 10 years.

John Dakin said, “The sale of Central Park and the lease renewal with Air New Zealand improves GMT’s portfolio metrics with occupancy increasing to over 98% and the weighted average lease term extending beyond six years.”

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