Partial Sale and Restructure at Fletchers
Media Release – Macquarie Goodman (NZ) Limited
Macquarie Goodman Property Trust Announces Partial Sale and Restructure at Fletchers
Date: 6 November 2006
Macquarie Goodman Property Trust ("MGP") is pleased to announce a partial sale and restructure of its interests at the Fletcher Head Office property located at 810 Great South Road, Penrose ("Property").
MGP first acquired an interest in the property in June 2004 with Fletcher Building Limited ("FBU") holding a headlease over the entire site with an initial expiry in March 2009.
The key terms of
the transaction are as follows:
(a) MGP will sell to FBU that part of the Property on the east side of Great South Road, which includes the Fletcher Building Head Office;
(b) FBU will enter into two new leases for industrial and office premises for those parts of the Property on the west side of Great South Road which it currently occupies, commencing 1 April 2007; and
(c) FBU will surrender the existing headlease over the Property as at 31 March 2007.
FBU will acquire the Penrose east property for $28.75 million, with settlement due 31 March 2007.
MGP will retain ownership of the Property on the west side of Great South Road which will be subject to new leases with Fletchers for 23,934 sqm of industrial space and 3,104 sqm of office space for nine year terms. AUT will remain a key customer on the site and the total net annual rent for the property will be approximately $4.2 million.
John Dakin, Chief Executive Officer of Macquarie Goodman (NZ) Limited, the manager of MGP, said "The restructuring of our single largest lease provides a number of benefits to MGP unitholders. The revised terms increase the weighted average lease expiry of the portfolio while reducing customer specific risk and mitigating the uncertainty around the expiry in 2009".