NZ$130 million industry park
NZX Release – Macquarie Goodman Property Trust (“MGP”)
Macquarie Goodman’s trusts commit to NZ$130 million industry park
MGP and Macquarie Goodman Industrial Trust (“MGI”) have agreed to jointly acquire a substantial development site in Otahuhu in Auckland’s south for NZ$34.4 million, with the vision of developing a NZ$130 million industry park over the next five years.
This acquisition will build on our success at The Gate Industry Park in Penrose where we have secured commitments from Carter Holt Harvey, Toll, Yates, Rapak Asia Pacific, BOC Gases, USG Interiors and most recently Recall and Norman Ellison.
Acquisition with MGI
The acquisition of the 26.5 hectare industrial development site in Otahuhu was secured for NZ$34.4 million and will be held under the co-ownership arrangement between MGP and MGI approved by MGP’s Unitholders on 23 March 2004.
The site is strategically located in Otahuhu in Auckland’s south. It is conveniently located near the main transport routes including the Southern Motorway, South Western Motorway, Massey Road and Great South Road.
MGP and MGI will enter into a Marketing Agreement with Auckland based property company Willis Bond & Co to assist in marketing the property. Willis Bond & Co will receive 50% of profits over independent valuations plus a margin of 25 basis points.
John Dakin, Chief Executive Officer of Macquarie Goodman (NZ) Limited, said, “Following a high percentage of precommitments at The Gate Industry Park, this acquisition delivers a strategic opportunity given its lower rental cost alternatives that cater for the demands of customers requiring space between 5,000 and 20,000 sqm.”
It is proposed that the property be developed over the medium term in several stages with stage 1 delivering a yield in excess of 9.5%. This transaction is subject to approval by the Overseas Investment Commission and MGP’s trustee.
The Gate Industry Park, Penrose
Under the co-ownership arrangement, MGP will acquire a 50% interest in two new facilities at The Gate Industry Park in Penrose for Recall and Norman Ellison.
The total acquisition price to MGP for the two facilities is around NZ$5.8 million with settlement scheduled on practical completion of the developments. The properties will be acquired on completion with the final purchase price to be determined by independent formal valuations.
The facility for Recall is a 5,300 sqm purpose-built warehouse, with a unique clearance height of 23 metres.
Recall has committed to a 15 year lease with fixed annual reviews of 3%. Its annual net commencing rental will be NZ$0.6 million. Together with its new 5,300 sqm facility, Recall will pay ground rent on 3,400 sqm of expansion land.
Recall is a wholly owned subsidiary of leading global support services group Brambles, which operates in almost 50 countries across six continents and employs approximately 30,000 people.
Norman Ellison will lease a new 4,600 sqm facility for an initial term of nine years with an option for a further six years. The net annual commencing rental is NZ$0.4 million.
Norman Ellison is a privately owned company that specialises in the production of tufted wool, wool blend and synthetic carpets.
John Dakin, also said, “The Gate Industry Park has been a very successful development with its quality and location consistently attracting high profile customers. It is now 70% precommitted with an impressive weighted average lease term of 7.2 years.”