The Millennium Centre estates & Yellow HQ at 600-604 Great South Rd, Greenlane.

New leases lift price on Greenlane sale

Published 3 October 2016, additional material at foot 4 October 2016:
Goodman Property Trust’s sale of 3 office properties at 600-604 Great South Rd, Greenlane, to syndicator Oyster Management Ltd has gone unconditional, and at a slightly higher price. The sale is contracted to settle on 28 February 2017.

The properties are the 2 Millennium office estates & the Yellow HQ building.

Goodman management company chief executive John Dakin said today the price had been revised, from $206 million to $210 million – determined on a passing yield of 7.25% – to reflect new leases secured during Oyster’s due diligence period.

Mr Dakin said Goodman would provide an equity underwrite to Oyster of up to $12 million to facilitate the transaction. The underwrite will extend for a maximum 2 years, and any amount drawn will receive an annual return of 8%, consistent with other investors.

Mr Dakin added: “This is an important transaction for the trust and part of an asset recycling programme that is providing significant balance sheet capacity. With sales proceeds of around $300 million expected this financial year, the trust’s loan:value ratio is at the bottom of the target band of 30-35%. It’s part of an organic growth strategy that is focused on delivering the trust’s development programme and rebalancing the portfolio, with increased investment in the Auckland industrial sector.”

Oyster chief executive officer Mark Schiele said the funds management company intended to structure investment in the Millennium Centre as a wholesale syndication.

Earlier story:
14 July 2016: Goodman to sell Millennium & Yellow buildings to Oyster

Attribution: Company releases.

, , , ,

Comments are closed.
WordPress Appliance - Powered by TurnKey Linux