Fletcher Building Ltd subsidiary Fletcher Construction has entered into a conditional agreement to build a 7-storey office building in the Wynyard Quarter which it will sell to the joint venture between Goodman Property Trust & Singapore sovereign wealth fund GIC, Wynyard Precinct Holdings, for $86.2 million.
The 16,735m² building on the corner of Gaunt & Daldy Sts, next to the linear park that will link Victoria Park to the Wynyard Quarter, will have a retail ground floor, 6 office levels & 152 parking spaces. It’s been substantially leased to IT service provider Datacom. 15,328 m² will be commercial, 1407 m² retail. Datacom has committed to a 15-year lease on 5 floors, representing 80% of the total rentable area.
It’s been designed to a 5 star green star certified rating standard and is scheduled for completion in March 2017.
Goodman (NZ) Ltd chief executive John Dakin the acquisition was expected to provide a yield on cost of around 8.5% once fully leased & income producing. The estimated value, once fully leased, was forecast to be $90 million.
Goodman Property Trust will also finance the construction by way of a funding arrangement with Fletcher Building, to be repaid on settlement of the completed building.
Mr Dakin said no fees would be paid to Goodman Group by the joint venture or Goodman Property Trust as part of the purchase. However, Fletcher Building has separately engaged Goodman Group to provide development management services on the project.
30 January 2015: Goodman’s GIC deal gets regulatory approval
16 November 2014: Mixed Goodman trust result moves focus to GIC
7 November 2014: GIC buys into Goodman waterfront partnership
Attribution: Company releases.