Goodman's $45 million development plans
Major developments coming off Goodman's drawing board.
Goodman Property Trust [NZX: GMT], the country's second-biggest listed property investor, has ratcheted up development plans with four new industrial projects in Auckland worth $45.8 million.
The Auckland-based property company's developments will add 27,112m2 of rentable area to its portfolio, generating annual revenue of $3.4 million, trust manager Goodman (NZ) says.
Goodman Property will develop a manufacturing and warehousing complex for Orora Packaging at its M20 Business Park and a new warehouse adjacent to the Orora development, costing a total of $26.9 million. The warehouse will be finished in October next year. The company will also increase the planned CSR Viridian expansion at Highbrook Business Park and build warehouse facilities for Holden (New Zealand) at its Savill Link estate by May 2016, for a combined cost of $18.9 million.
"Strong property fundamentals and continuing customer demand is allowing us to accelerate our development programme," Goodman chief executive John Dakin says. "With new businesses choosing to locate to design-built premises at our estates and existing customers exercising expansion options, we are targeting $100 million to $150 million of new development projects annually."
Goodman Property has been increasing its development work after selling $150 million of properties last year as part of a strategy to improve the quality of its portfolio. It also has a joint venture with Singapore sovereign wealth fund GIC.
The property investor's property portfolio and development projects were valued at $2.1 billion as at March 31.
Units in the trust last traded at $1.17, and have increased 2.6% this year. The stock is rated an average 'hold' based on six analyst recommendations with a mean target price of $1.16.
(BusinessDesk)
Paul McBeth
Mon, 08 Jun 2015
Mon, 08 Jun 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Goodman's $45 million development plans
48415