The Goodman Property Trust has bought T&G Global Ltd’s Mt Wellington head office & distribution facility for $65 million on a sale & leaseback basis.
Goodman, managed by Goodman (NZ) Ltd, also conditionally bought a Favona Rd, Mangere, property predominantly leased to T&G Global last December. The 3 adjoining sites at 42, 60 & 70 Favona Rd cover 7ha backing on to the Manukau Harbour.
The 5.8ha Mt Wellington property, at 2-6 Monahan Rd, has 17,989m² of warehouse & office space, plus associated parking & yard areas. Renewal rights can extend the initial 2-year lease out to 2023.
The unconditional acquisition, which reflects a passing yield of 5.1%, is expected to settle on 26 September.
Goodman NZ chief executive John Dakin said yesterday: “This is another great long-term investment for the trust. The property features functional industrial facilities and, with immediate access to State Highway 1, it has excellent connectivity with major freight & transport infrastructure.”
He said the property, at the Mt Wellington interchange near Sylvia Park shopping centre, was central to Auckland’s large consumer market, making it ideal for fulfilment & logistics businesses.
It has just 31% site coverage, presenting opportunities for redevelopment & intensification.
Mr Dakin said Auckland’s industrial market was at capacity – vacancy was historically low and limited land was available for new development: “Securing strategic brownfield sites is essential if we are to meet our customers’ supply chain requirements over the next 5-10 years.”
10 December 2018: Goodman buys Mangere site
Attribution: Company release.