Further commitment from Linfox Logistics
NZX Release – Macquarie Goodman Property Trust
MGP secures further commitment from Linfox Logistics at Westney Industry Park
Date: 5 December 2005
Macquarie Goodman Property Trust (“MGP”) is pleased to announce an extension to the Linfox Logistics facility at Westney Industry Park, Mangere, Auckland.
Linfox Logistics (NZ) Limited (“Linfox”) has exercised its expansion rights and will extend its recently completed warehouse and distribution facility at Westney Industry Park. The extension adds an additional 9,348sqm of warehouse, 358sqm of office space and 3,295sqm of canopies to the existing premises.
The development will be undertaken by MGP following its acquisition of Macquarie Goodman Group’s 50% share of ownership of the existing Linfox development at Westney Industry Park in March 2005. With practical completion expected in June 2006 the total project cost of $10,291,454, including all fees and finance costs, provides a forecast yield of 9.1%.
Following the completion of the extension, Linfox will enter into a new lease that incorporates the existing premises and the extension. The new lease will expire in November 2013 and will have the same rental rates, review mechanism, expiry date and renewal options as the original agreement.
The ground lease with Workstore Developments will also be amended to include the additional 2.0ha of land occupied by the extension.
Macquarie Goodman (NZ) Limited’s Chief Executive Officer, John Dakin said “By offering customers flexibility we are able to accommodate their changing business needs. The expansion of the warehouse and distribution facility for Linfox is a good example of this. The net lettable area of the facility has increased from 39,010 sqm to 52,011 sqm with the corresponding rise in rental income resulting in Linfox becoming MGP’s second largest customer. The Linfox facility is now one of the largest modern warehouses in Auckland with a building footprint of over 5.0ha.”
The weighted average lease expiry of the MGP portfolio improves from 4.4 years as at 30 September 2005 to 4.5 years following this extension.