Commercial and industrial property group Goodman Property Trust (GMT) has announced an $11 million industrial development at Highbrook Business Park.
The listed company, which owns Highbrook Business Park, also announced to the NZX the sale of 7 Show Place, a commercial building in Christchurch.
Goodman CEO John Dakin said the company is executing a development-led growth strategy converting GMT’s land holdings into high-quality, income-producing properties.
“Funded through asset sales, its repositioning the portfolio and focusing our investment in the Auckland industrial sector,” he said.
The new 7300 square metre industrial facility at Highbrook Business Park is being developed for Plytech International. The manufacturer and supplier of plywood-based products is an existing customer that is doubling its space requirements to facilitate its business growth.
The development has a forecast total cost of $11.4m and is expected to complete in November 2018.
“This new project adds to the $107m of development work currently underway at Highbrook,” said Dakin.
“The volume of activity reflects the strong demand that exists for prime industrial space in Auckland and the unique attractions of this world-class business park.”.
The sale of 7 Show Place for $14.5m continues a successful sales programme that is funding GMT’s development work book. The three-level, 3037 sqm office building within Show Place Office Park in Addington, was sold to a local syndicator.
The transaction is expected to settle in January.
Following completion of all current developments and contracted sales, GMT’s Auckland industrial weighting will have increased to almost 85 per cent of its total portfolio, while strategic land holdings represent less than 5 per cent.