MGP Acquires Interest in Prime Chch Office Park
NZX Release – Macquarie Goodman Property Trust
MGP Acquires Interest in Prime Christchurch Office Park
Date: 28 May 2007
Macquarie Goodman Property Trust (“MGP”) is pleased to announce the acquisition of a 50% interest in the company that owns Show Place Office Park in Addington, Christchurch for $30 million.
MGP has purchased a 50% interest in Henshaw Holdings Limited, the owner of Show Place Office Park, from interests associated with local investor Ernest Henshaw. The acquisition provides MGP with a half share in what is arguably New Zealand’s premier office park development. The office park has an asset value in excess of $88.0 million and comprises 6 low rise commercial buildings offering 18,370 sqm of net lettable area.
The high quality office park is strategically located, being positioned next to the Addington Raceway, close to Hagley Park and the Tower Junction Shopping Centre and just 4.0 kms from the CBD. The park offers impressive amenities with landscaped grounds and a recently completed gym and restaurant facility. Key customers in the award winning property include Hewlett-Packard, Holcim, IAG, Solid Energy, and Transpower, which contribute to a weighted average lease term of 5.4 years.
With a total site area of 5.5 ha the estate has further development potential, with an additional 11,000sqm of net lettable area able to be built. Future development will be staged to meet occupier demand and will be funded from the company’s existing equity and debt arrangements.
Macquarie Goodman (NZ) Limited’s Chief Executive Officer, John Dakin said, “MGP has committed to the Christchurch property market and this acquisition is an important step in establishing a full property offering. Show Place is a premier asset which enhances our portfolio and like our other Christchurch assets, Southpark Industrial Estate and Glassworks Industry Park, offers further development potential.”
The investment vehicle that owns Show Place is forecast to provide a yield of 7.5% following the leasing of vacant space and the completion of rent reviews. The acquisition settled after the close of trading on Friday 25 May 2007.