Friday, July 19, 2024

GMT invests additional $107m into Auckland Industrial

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The site plan. Photo supplied

Goodman Property Trust (GMT), the stock exchange-listed company which owns Highbrook Business Park, has announced a package of six new industrial development projects totalling $107 million.

Goodman (NZ) Limited’s chief executive officer, John Dakin said: “The Auckland industrial market is the strongest it’s ever been with historically low vacancy creating significant opportunity for our business. We’re intensifying GMT’s development programme to help meet customer demand and the commencement of these new projects means the Trust will have over $170m of building work underway in Auckland.

The six new projects, which utilise over 10 hectares of development land, will add 58,368 sqm of warehouse and office space to GMT’s 1,000,000 sqm portfolio.

The package includes a combination of build-to-lease and pre-committed industrial facilities that are expected to generate around $8.9m of additional revenue once fully leased.

John Dakin said “We’re executing a development led growth strategy that is converting GMT’s land holdings into high quality, income producing properties. Funded through asset sales it’s transforming the portfolio and focusing our investment in the preferred Auckland industrial sector.”

Following completion of all current and proposed projects, GMT’s Auckland industrial weighting will have increased to over 78.0% of its total portfolio, while its remaining land holdings will represent just 5.1 per cent.

John Dakin said: “The greatest level of development activity is being undertaken at Highbrook Business Park with $70.5m of new investment. It continues the recent momentum at this key estate which is expected to be over 90 per cent complete within three years.”

The Trust is also re-developing the Concourse Industry Park in Henderson. A multi-unit development on the former boat building facility on the Selwood Road site will modernise the property and extend the range of options available to businesses wanting to access the improved motorway links provided by the new Waterview tunnel.

A new warehouse at Savill Link in Otahuhu and an extension of the existing Fliway facility at Westney Industry Park in Mangere complete the development package.

John Dakin said “Positive market fundamentals and limited leasing options within our own portfolio mean it is the right time to be intensifying the development programme. The volume of new building activity should also ensure we receive the most competitive construction pricing.”

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