18 May 2018
Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT”), is pleased to announce the sale of the VXV office
portfolio to certain Blackstone funds for $635 million.
The VXV portfolio is owned by Wynyard Precinct Holdings Limited, a joint venture between GMT (51%) and GIC, the
sovereign wealth fund of Singapore (49%). Both parties have agreed to the sale.
VXV is a high-quality commercial precinct adjoining Auckland’s vibrant Wynyard Quarter. It includes seven low-rise
office buildings, providing around 88,000 sqm of space.
The gross sale price of $635 million reflects a passing yield of 6.6%.
John Dakin, Chief Executive Officer of Goodman (NZ) Limited said, “This is a defining transaction for our business as it
completes a repositioning programme that has established GMT as the country’s leading provider of high-quality
industrial space. Following this and other contracted sales, GMT’s $2.2 billion portfolio will be almost 100% invested
in the Auckland industrial market.
“We have made tremendous progress with our development programme over the last five years with more than $670 million of
new projects improving an already high-quality portfolio. The $1.2 billion of assets sales funding this development
activity have also deleveraged the balance sheet. With an expected loan to value ratio of below 20% following this sale,
we have substantial capacity for future development and investment opportunities.”
The transaction, which remains subject to Overseas Investment Office and freehold land owner approval, is expected to
settle in late FY19 and will add around 2.5 cents to GMT’s proforma NTA. The settlement timing means the sale is not
expected to have a material impact on earnings or distributions for FY19.
ends