Sale of office assets for $26.3 million
NZX Release – Macquarie Goodman Property Trust
Macquarie Goodman executes sale of office assets for $26.3 million
Date: 16 November 2005
Macquarie Goodman (NZ) Limited
(“MGNZ”), the manager of Macquarie Goodman Property Trust
(“MGP”), is pleased to report that MGP has
entered into unconditional contracts to sell NEC House in Wellington and Windsor Court in Parnell for $18 million and $8.25 million respectively. Net proceeds from the sales is expected to be in excess of $3.9 million.
The $18.00 million gross sale price of NEC House (formerly Panasonic House) is $4.25 million above current book value. John Dakin, Chief Executive Officer of MGNZ, said “The market yield of 8.27% represents an excellent result for Unitholders and reflects the value of active management and a strong Wellington market”. Repositioning of this asset by MGNZ has increased the current weighted average lease term from 2.0 years to 4.2 years, since 31 March 2005.
MGP also took advantage of the strong investment market to sell Windsor Court. The gross sale price of $8.25 million equates to a yield of 8.13% and is $645,123 above current book value.
The expected settlement date for both assets is 31 March 2006.
On settlement, the balance of the sale proceeds will be utilised to reduce MGP’s total debt, with likely reinvestment into MGP’s development pipeline as new opportunities are secured. MGP’s gearing is estimated to be 32% on completion of the disposals.