Goodman Property's Highbrook Park attracts new $26.8M coolstore

Wednesday 15th July 2015

Goodman Property Trust, the country's second-biggest listed property investor, will build a new $26.8 million coolstore at its Highbrook Business Park site in Auckland.

The Auckland-based property firm development will add a new 7,458 square metre facility at the Highbrook site, which has eight new projects in the pipeline totalling $108.6 million, the trust's manager Goodman (NZ) said in a statement. The Highbrook projects are expected to generate annual rents of $8.6 million, a yield on cost of about 7.9 percent.

The customer committed to a 15-year lease, and the new development has expansion rights attached.

"A positive operating environment is facilitating our customers’ business growth and we’re extremely pleased to be developing a new, larger coolstore for an existing refrigerated logistics customer at Highbrook," Goodman chief executive John Dakin said. "Businesses recognise the quality and locational benefits of this award winning estate and we are now more than two thirds of the way through its planned development."

Goodman Property has been increasing its development work, including a joint venture with Singapore sovereign wealth fund GIC, after selling $150 million of properties last year as part of a strategy to improve the quality of its portfolio.

The trust's units last traded at $1.23, and have gained 7.9 percent this year. The stock is rated an average 'hold' based on six analyst recommendations compiled by Reuters, with a median price target of $1.17.

BusinessDesk.co.nz

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