Australian giant sets its sights on Auckland industrial land

By Christine Nikiel

Friday 26th July 2002

Australia's largest listed property company, Macquarie Goodman Industrial Trust, will add more Auckland industrial sites to its portfolio in the next couple of months.

Development manager Brett Schofield said the trust was looking at several "passive" industrial opportunities in Auckland to boost its cashflow and that any purchase would be in the next few months.

There was competition for those sites, Mr Schofield said, but any further investment would be limited to $5-6 million.

MGI's purchase of Auckland's 13ha industrial subdivision The Gate in Penrose for $50 million last month was a good start to its aim to have 10% of its $1.6 billion portfolio in New Zealand, Mr Schofield said.

While widespread in Australia, the industry park idea has taken some time to attract tenants. Greg Reidy of Willis Bond said it had been difficult to get tenants interested when The Gate was first pitched because they were not used to the idea of grouping together under one landlord.

Mr Schofield said New Zealand tenants tended to stick together and "build in a line like a row of strip shops" and were concerned about individual branding. To combat this The Gate would be rebranded The Gate Industry Park to give more flexibility and depth to future tenants and developments.

It was important to create individual branding for each tenant and offer signage rights, he said, but at the same time brand The Gate Industry Park as an address on its own. Current tenants include Carter Holt Harvey, which has its distribution centre there, Yates and Rapak Asia Pacific.

Further development plans for The Gate depended on the market but MGI was planning to improve main road access to the site and onsite exits and entries because transport was a major issue for tenants, Mr Schofield said.

The Gate, developed by merchant bank Willis Bond, which helped fund the initial stages of MGI's purchase, is the first acquisition in New Zealand.

MGI preferred to buy land on one big title and be one landlord to a number of tenants, Mr Schofield said. This ensured tenants a landlord who funded future development and site infrastructure and services.

The trust was not interested in CBD offices but could be interested if something such as a research and design laboratory with a warehouse came on the market, Mr Schofield said.

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