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Goodman Property sells Auckland sites for $22.95m

Monday 20th October 2008

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Goodman Property Trust sold two properties in Parnell, Auckland, for NZ$22.95 million, matching their book value as at September 30, to repay debt and fund new developments.

The trust revalued its portfolio as at the end of last month, reducing the value of the Stanley Street, Parnell sites from there NZ$24.05 million book value in March.

"You can still sell assets in this market," John Dakin, chief executive of the trust's manager Goodman (NZ) Ltd., told Businesswire. "You have just got to be a realist about your pricing."

The sale means Goodman is near the end of a series of sales of non-core assets over the past few years amounting to NZ$300 million to NZ$400 million. The trust doesn't plan to buy more investment properties any time soon.

"We're focusing on developing out the sites we have and selling assets where we have maxed the value," Dakin said.

Units of Goodman Property have declined about 5% in the past three months, outperforming the NZX 50 Index, which has dropped about 10% The units gained 0.9% to NZ$1.10 today.

The trust also said it has two commitments to its Highbrook Business Park development, which is scheduled for completion in mid 2009 at a cost of NZ$18.4 million. Goodman has a 50% stake in the project developer, Highbrook Development. Schneider Electric (NZ) will move its head office to the site and Steel & Tube Holdings will relocate its roofing division, the trust said in a statement.

"The feedback is that the world has stopped," Dakin said. "The reality is businesses are willing to look through the cycle for high-quality developments."

By Jonathan Underhill

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