GMT Viaduct Joint Venture Makes Strategic Acquisition

GMT Viaduct Joint Venture Makes Strategic Acquisition

Goodman (NZ) Limited, the Manager of Goodman Property Trust (“Trust” or “GMT”), has announced that Wynyard Precinct Holdings Limited1 has conditionally agreed to acquire the new office building being developed for Datacom in Auckland’s Viaduct Quarter for $86.2 million.

Keith Smith, Chairman of Goodman (NZ) Limited said: “The viaduct joint venture is delivering on its strategy, investing in high quality office property in Auckland’s fastest growing commercial precinct. It’s another positive acquisition for GMT, enhancing and diversifying the wider portfolio.”

Located on the corner of Gaunt and Daldy Streets, and adjoining the planned linear park that will link Victoria Park to the Wynyard Quarter, the 16,735 sqm development will be purchased from Fletcher Building on completion in March 2017.

John Dakin, Chief Executive Officer of Goodman (NZ) Limited said: “Neighbouring our existing Viaduct assets and in an area of substantial private and public development it’s a compelling investment opportunity that was facilitated through Goodman’s relationship with Fletcher Building.”

The office facility, which provides 15,328 sqm of commercial area, 1,407sqm of retail space and 152 car parks, will offer the latest in high quality business accommodation. Featuring large flexible floor plates and incorporating sustainable architectural elements and energy efficient building systems the property is designed to a five green star rating.

Datacom, an established and successful IT service provider, will consolidate its Auckland operations into the new office facility. The privately owned local business has committed to a 15 year lease across five floors of the new building, representing around 80% of the total rentable area.

With the uncommitted space providing a further value-add opportunity the acquisition is expected to provide a yield on cost of around 8.5% once fully leased and income producing. The estimated value, once fully leased, is forecast to be $90 million.

To facilitate the acquisition of the completed building by Wynyard Precinct Holdings Limited, GMT has entered into a development funding arrangement with Fletcher Building whereby GMT funds the construction of the building until settlement.

There are no fees being paid to Goodman Group by the joint venture or GMT as part of the purchase. However, Fletcher Building have separately engaged Goodman Group to provide development management services on the project.

ENDS

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