Goodman Property buys Carter plant for $12.5M

Goodman Property buys Carter Holt Harvey plant in Christchurch for $12.5M

By Jason Krupp

Dec. 8 (BusinessDesk) - Goodman (NZ) Ltd., the manager of Goodman Property Trust, agreed to acquire a Christchurch property occupied by Carter Holt Harvey Packaging for $12.5 million.

The 20,380sqm office and warehouse facility provides an estimated yield on cost of 10.5% and is expected to settle before 31 December 2010, the company said in a statement. The nine year lease to Carter Holt Harvey, which is subject to fixed annual increases, still has 5.5 remaining with rights to extend the term to 12 years.

“This is a strategic acquisition that offers an attractive yield with future development potential," said Peter Dufaur, general manager of development. "The acquisition is further enhanced by our ownership of the neighbouring property.”

The property is located alongside the trust's Glassworks Industry Park, and provides additional alternative access and future redevelopment options.
Shares in the trust were unchanged at 92 cents, and have declined 12.2% this year.

(BusinessDesk)

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