Media release
Thursday 16th December 2004 |
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The total project cost of the development is $14.6 million (A$13.7 million) with practical completion scheduled for July 2005. The cost of the project will be jointly shared between MGI and MGP under their co-ownership agreement.
The new warehouse/distribution facility will provide the trusts with an initial yield of 8.75% on cost. The lease term is six years with two yearly reviews. The lease structure also provides Toll Logistics with expansion rights over an additional 14 hectares of development land at Savill Link.
Jointly acquired by MGI and MGP in June this year, Savill Link is a 26.5-hectare site located in Otahuhu. Benefits of the site include its central location to main transport routes such as the Southern Motorway and Great South Road, and its proximity to Auckland International Airport.
Toll is MGI's third largest customer and, between the two trusts, occupies 165,000 sqm of space in Australia and New Zealand across eight facilities.
Macquarie Goodman (NZ) Limited chief executive officer John Dakin said the development of the facility for Toll Logistics provided us with the security of a high profile customer to commence the Savill Link development.
"Not only have we secured our first customer at Savill Link, we have also strengthened our relationship with an existing customer, which has the potential to occupy more than half of this key development site," he said.
Fund manager of Macquarie Goodman Funds Management Limited, Nick Kurtis, said the signing of this precommitment demonstrated the success of our customer service model in meeting the growing needs of customers in the transport and logistics industries.
"The size and scope of our development pipeline in Auckland provides greater flexibility and speed in responding to our customer's expansion plans," he said.
General manager property of Toll Logistics Group, Michael Fox confirmed the new deal and said, "It gives the Toll Group the ideal landbank to continue to grow its New Zealand business, we are currently talking to many of our customers who require new warehousing and the Otahuhu site of Macquarie Goodman would become a Toll business park following on from Toll's success in the Australian market."
David van Aanholt, chief operating officer of Macquarie Goodman Management Limited, "It is extremely rewarding that our customer service model is working on a cross Tasman basis with some 77,000 sqm of precommitment deals announced over the past month with existing Macquarie Goodman customers including Toll, Linfox and Exel."
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