GMT Achieves Further Development Milestones
Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” or “Trust”), is pleased to announce further development success at M20 Business Park.
Discount department store operator, Kmart, has committed to a new purpose built warehouse and office facility at GMT’s Wiri business park. The 13,400 sqm development will be the principal distribution hub of Kmart’s New Zealand operations.
Scheduled to complete in January 2011, the new facility has an estimated total project cost of $19.2 million (including land and full construction costs). The 12 year lease is set at market rentals and has a fixed review structure. The agreement also includes two rights of renewal of 5 years each.
It is the second development secured at M20 Business Park in the last 6 months, with the Ingram Micro facility also under construction. The two new facilities are expected to provide a blended yield on cost in excess of 8.8%
Goodman (NZ) Limited's Chief Executive Officer, John Dakin said “The new commitment from Kmart reflects the attraction of our development offering and returning business confidence. It also demonstrates the importance of Goodman’s global relationships which we have been able to leverage to GMT’s advantage”.
Kmart is a significant customer in Goodman Group’s Australian portfolio and has recently committed to the development of a new 76,735 sqm facility in Melbourne valued at approximately A$65 million.
Improving occupier demand has also been reflected in new leasing at completed office developments in Show Place Office Park, Christchurch and Highbrook Business Park, Auckland. High quality customers Solid Energy and BNZ have committed to new 9 and 12 year leases respectively, encompassing over 5,100 sqm of space across the two estates.