Department store operator Kmart is to establish its principal distribution hub in a $19.2 million warehouse and office facility at the Goodman Property Trust's M20 Business Park in Manukau City.

Kmart's 13,400sq m facility at Wiri was due to be finished next January, and had a 12-year lease set at market rentals with a fixed review structure, including two rights of renewal of five years each, trust manager Goodman (NZ) Ltd said today.

It was the second development secured at M20 in the past six months, with the other being the Ingram Micro facility being built.

Goodman (NZ) chief executive John Dakin said the Kmart deal reflected the attraction of the development, and returning business confidence, as well as demonstrating the importance of Goodman's global relationships.

Kmart was a significant customer in the Goodman Group's Australian portfolio, recently committing to the development of a 76,735sq m facility in Melbourne valued around $A65m ($NZ84m).