Property trust spends $7.25M in Tauranga

By Phil Boeyen, ShareChat Business News Editor

Thursday 28th March 2002

Tauranga's high rate of economic development has spurred the National Property Trust to buy a retail arcade in the city.

The trust says it has agreed to purchase Goddards Centre in the central business district for $7.25 million. It says rental returns are currently 9.8% but will increase to 11% when vacant areas are leased.

"The Bay of Plenty area as been identified as a region satisfying the investment criteria of the trust's manager in that it is experiencing high rates of economic development.

"Its population is expanding rapidly on the back of a well-performing export sector."

The Goddards Centre is a two level property and is primarily a retail arcade with twenty shops located on the ground floor and offices and two restaurants located on the upper floor.

"The manager believes that the property has development potential and proposals are being investigated to develop further retail and commercial office space. Details of these proposals will be released later.

"A conditional sale and purchase agreement has also been signed for an adjoining property which will assist these proposals."

The contract for the property is unconditional with settlement expected by the beginning of May.

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