Sharechat Logo

Goodman Property JV to buy central Auckland office building for $62M

Friday 12th May 2017

Text too small?

Goodman Property Trust's joint venture with Singapore government-owned GIC has agreed to buy Bayleys House, a recently completed office building in central Auckland, for $62 million, Goodman Ltd, the trust's manager, said. 

 

 

The 8,106 square meter low-rise office building adjoins the Fonterra Centre on the corner of Gaunt and Halsey Streets in Auckland's VXV Precinct, an area located between Victoria Park and the viaduct.  The acquisition, which remains conditional on the approval of the freehold land owner, is expected to settle in June 2017. 

 

 

“This is a high-quality acquisition that extends and diversifies the joint venture’s portfolio of Viaduct properties. The partnership strategy provides scale for GMT and gives the trust greater exposure to Auckland’s fastest growing commercial precinct," said Goodman Ltd chief executive John Dakin in a statement to the stock exchange.  

 

 

Predominantly leased to real estate specialists Bayleys, technology provider IBM and law firm Mayne Wetherell, the new leases incorporate fixed review structures and have a weighted average term of nine years. The ground lease obligations are structured for a period of 15 years.

 

 

Acquired from Goodman Group, which undertook the development on a build-to-lease basis, the purchase price reflects an initial yield of 7.6 percent on contract rentals. Additional fit-out rent increases the passing yield to 8.8 percent, Goodman said. 

 

 

After this purchase and the purchase of the Datacom Building, which settles today,  the joint venture will own seven buildings in the VXV Precinct. With a value of more than $470 million, the portfolio will provide over 88,000 square meters of office accommodation to around 20 customers. The portfolio has an occupancy rate of 96 percent.

 

 

Goodman Property Trust units were trading up 0.4 percent at $1.225 but are down 4.1 percent over the past year. 

 

 

(BusinessDesk)

 



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Unions gearing up to oppose 'market tests' on Fair Pay Agreements
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals
Affordable electricity key to decarbonisation - Genesis

IRG See IRG research reports