Goodman Property Trust set to sell properties in Chch

Goodman Property Trust is selling five of its blue chip properties in Christchurch as part of its continuing programme of releasing capital for reinvestment. The properties being marketed by Colliers International are three new buildings in the Goodman-owned Glassworks Industry Park, Hornby and another two in the premium Show Place Office Park at Addington. General manager Mark Macauley described it as one of the most significant portfolios to come to the market in Canterbury since the earthquakes. "We’re expecting these properties to attract considerable interest. They’re modern, 100% of new building standard, well located with excellent tenants and they can be bought as one large asset or separately. "It’s a very attractive proposition and we always have institutional investors, syndicates and private passive investors seeking high quality properties such as these". John Dakin, chief executive officer of Goodman (NZ) Ltd, said the Trust was only looking to divest if the price was right. "The disposals are part of a wider asset sales programme. We are focused on organic growth with increased levels of development activity being funded through asset sales. The Trust completed almost $150 million of asset sales in the last financial year, with around 25% of these sales in Christchurch. "Strong property fundamentals and robust investor demand resulted in sharp prices being paid and strong gains being recorded. The Christchurch investment market continues to be strong and offers some of the greatest opportunities for capital recycling." Dakin said Goodman expected to announce between $100 million to $150 million of new development projects this financial year, funded through asset sales in both Auckland and Christchurch. "Goodman Property Trust has developed around 40,000m2 of industrial and office space in Christchurch since 2008 and we continue to actively seek customer pre-commitments in this location. Occupier or customer demand is currently strong across all our estates with the majority of recent new development projects announced at Highbrook Business Park in East Tamaki," he said. The Glassworks Industry Park portfolio comprises three buildings housing premium businesses MOVE Logistics, DHL, Packaging House, Cirtex and Bridgestone. Total net lettable floor area is nearly 30,000m2 spread over 3.5ha. All the buildings were completed in 2014 and have a staggered lease expiry. Late last year, Goodman sold Placemakers and Big Chill at the Glassworks. Placemakers fetched $7.2 million, representing a 6.5% yield. The sale was made up of $6.45 million for the building and $750,000 for the 3,000 square metres of expansion land. Big Chill sold for $7.1 million, with a 7.1% yield. Macauley said Glassworks was one of the most sought after industrial developments in the city and was home to a mix of high quality national and international tenants. "Its location has greatly benefitted from the improved motorway system. It’s set to gain further efficiencies when the second stage of the Southern Motorway is complete. This features major off ramps to both Halswell Junction and Shands Rd, which Glassworks sits between." Goodman is also marketing the buildings housing IAG’s Christchurch offices at 12 and 14 Show Place, Addington. Show Place is a premium campus style estate. It comprises 25,000m2 in total of modern office accommodation with a range of on-site facilities. The IAG building at 12 Show Place and the gym and café at 14 Show Place have a total net lettable area of 7881m2 and the insurer has a nine-year lease expiring in 2025 with further rights of renewal. Goodman has recently refurbished the building. "These properties have an excellent car parking ratio, and built in rental growth." The properties are for sale by deadline private treaty, closing September 23.