GMT acquires new 16,000 sqm office development

GMT acquires new 16,000 sqm office development

Date 20 November 2013

Release Immediate    

Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” or “Trust”) is pleased to announce that GMT has acquired the new head office being developed for Fonterra in Auckland’s Viaduct Precinct.

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The 16,000 sqm campus style office is one of two low-rise commercial buildings being developed by Goodman Group in conjunction with Fletcher Building, owners of the leasehold interest in the site.

Keith Smith, Chairman and Independent Director of Goodman (NZ) Limited said: “Through its relationship with Goodman Group, GMT has the exclusive opportunity to own one of Auckland’s most significant new office developments. We’re extremely pleased to be building a relationship with Fonterra, one of the world’s leading dairy companies, as they transition to new business premises in the Wynyard Quarter.” Situated on Fanshawe Street, opposite Victoria Park and between the GMT-owned Air New Zealand building and Viaduct Corporate Centre, the seven level property will feature large flexible floor plates and incorporate environmentally sustainable materials and energy efficient building systems that support new, technology driven, workplace practices.

Fonterra has taken a 15 year lease over the building which includes naming rights, underground car parks, and further rights of renewal. The ground lease obligations to be borne by GMT have been structured to mirror the occupational lease.

John Dakin, Chief Executive Officer of Goodman (NZ) Limited said: “This is a unique opportunity for GMT to partner with leading New Zealand companies to increase its investment in one of Auckland’s most strategic real estate locations. With a long-term lease to a high quality customer, the acquisition will enhance the Trust’s wider portfolio.” Fonterra Chief Executive Theo Spierings who, together with Fletcher Building Chief Executive Officer Mark Adamson and John Dakin, attended a dawn ceremony to bless the new site yesterday, said the ceremony was of special relevance to the Cooperative.

“As a farming co-operative, we are closely linked to the land. The care and sustainability of our local environments and communities are important to us and are a key part of our strategy. That is why it is important that the design of our new headquarters reflects an environmentally-conscious approach.” GMT’s purchase price of $92.6 million was established by independent valuation and reflects an initial cash yield of 8.0%. GMT will pay a 5% deposit with the balance due following completion of the project. Settlement of the acquisition is expected to be February 2016.

More than 1,000 staff are expected to work in the new head office, while the second building is being developed by Goodman Group on an uncommitted basis.

Together, the buildings will provide almost 25,000 sqm of rentable space making it one of the largest commercial developments undertaken in Auckland in the last five years.

ENDS

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