Goodman Property Trust raises $45 mln in private debt issue

By Paul McBeth

Sept. 7 (BusinessDesk) – Goodman Property Trust, which recently had one of its managers poached by rival AMP NZ Office Trust, has raised $45 million through a private debt issue.

The seven-year bonds will pay 7.58% per annum, and are rated BBB+ Standard & Poor’s. The proceeds will be used to repay bank debt and diversify the trust’s funding sources.

Goodman Property raised $150 million in December to pay down bank debt, and as at March 31, the listed property investor had cut its banking facility to $280.1 million from $433.3 million a year earlier, according to its annual report. Still, total group borrowings were at $547.1 million, down from $549.4 million in 2009.

The bond issue, which was managed by ANZ National Bank, isn’t expected to have a material impact on operating earnings.

The placement was in response to an inquiry from wholesale investors.

Shares in the listed property trust rose 1.1% to 96 cents, and have dropped 12% this year.

(BusinessDesk)

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