News & Updates
Goodman Property Trust receives green light
November 30 th 2007 | By Scoop Independent News
Unit holders in the Goodman Property Trust have overwhelmingly supported the Trust's proposals to purchase a 50 per cent holding in Auckland's Highbrook Business Park, and to raise $275 million in new equity.
At today's meeting of unit holders held in Auckland, investors in the listed property trust approved both resolutions, and also ratified amendments to the performance fee structure for the Trust management company.
Chairman Jim McLay told the meeting that Highbrook would be ''one of the main drivers of the business' future growth ... and signalled a new and important stage in the Trust's evolution''
''The transaction complements and enhances the Trust's existing high quality portfolio, while also offering a substantial platform for future growth,''said Mr McLay.
''The acquisition is consistent with the strategic direction we have chosen."
Goodman has already received strong support from institutions, which fully subscribed to the $229 million on offer. The remaining $46 million being sought is being raised through the retail market at $1.43 a unit, the same price paid by institutions.
On completion, Goodman Property Trust will be the country's largest listed property trust with an estimated market capitalisation of $1.3 billion. It specialises in industrial and business space.
Chief Executive John Dakin told unit holders that in the short time since proposing the acquisition, the Trust had signed up three additional new leases at Highbrook totalling 6,500 sqm of office and industrial space.
The most significant of these is a new purpose built facility for Transtore, which has an estimated value of $7.6 million. "These recent commitments reflect the high level of interest in Highbrook Business Park. The estate is unprecedented in New Zealand in terms of scale, location, landscape and facilities,"said Mr Dakin.
Once fully developed it is expected to have a value in excess of $1.2 billion and accommodate a workforce of up to 15,000 people. "Through our 50 per cent ownership we will share in already completed developments within the park, future properties as they are developed and 69 hectares of yet to be developed land." Mr Dakin said the proposal involved "high quality assets" represented a "low risk investment" and was a "great offer" for retail investors.
He said the proposed investment package will increase unit holder cash distribution for 2009 by 1.5 per cent, open up access to the superior yields from Highbrook's development pipeline, increase the Trust's ability to borrow by an additional $220 million, increase net tangible assets by 2 cents to $1.30 and advance the Trust's eligibility to enter the NZX10 index.