Macquarie Goodman delivers its strategy

Macquarie Goodman delivers its strategy

Macquarie Goodman (NZ) Limited (“MGNZ”), the manager of MGP, is pleased to announce that MGP has entered into a conditional contract to dispose of Unisys House in Wellington for $44.0 million to Kiwi Income Property Trust.

The sale is in line with Macquarie Goodman (NZ)’sMGNZ’s strategy to dispose of MGP’s non-core assets over the medium term. This strategy delivers an enhanced balance across the key asset types within MGP’s portfolio and further strengthens its position as a leading player in the industrial property market.

It is proposed that on settlement, MGP will reinvest $8.25 million under its co-ownership arrangement with ASX-listed Macquarie Goodman Industrial Trust (“MGI”). The co-ownership arrangement is subject to approval of the resolutions to be put to today’s special meeting of MGP’s Unitholders.

As a result of the reinvestment, MGP’s proportionate interest under the proposed co-ownership arrangement will equalise to 50:50 with MGI, augmenting its new industrial property sector focus.

It is proposed that on settlement, MGP will reinvest $8.25 million under its co-ownership arrangement with ASX-listed Macquarie Goodman Industrial Trust (“MGI”) (subject to approval of the resolutions to be put to today’s special meeting of MGP’s Unitholders).

As a result, MGP’s proportionate interest under the co-ownership arrangement equalises to 50:50 with MGI, augmenting its new industrial property sector focus.

Reduction of Debt

The balance of the sale proceeds will be utilised to reduce MGP’s debt in the short term, while Macquarie Goodman (NZ)MGNZ focussesfocusses on sourcing future acquisition opportunities.

MGP’s gearing is estimated to be 24% on completion of the disposal and equalisation to 50% under the co-ownership arrangement. .
John Dakin, Chief Executive Officer of Macquarie Goodman (NZMGNZ), said “At a sale price above book value, this disposal is an excellent result for Unitholders. Importantly, the sale will also enable us to reinvest a component of the proceeds immediately into assets that are core to our strategy.”

The sale is conditional on:

approval from the Manager and Trustee of Kiwi Income Property Trust; approval from the Trustee of MGP; and obtaining necessary approvals for related party transactions.

The sale is conditional on approval from the Manager and Trustee of Kiwi Income Property Trust.The contract will is expected to become unconditional on 31 March 2004 with settlement on 30 April 2004., subject to the above conditions.

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