Goodman Property - good news and bad news
It's been a case of first the good news and then the bad news at listed Goodman Property Trust.
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It’s been a case of first the good news and then the bad news at listed Goodman Property Trust.
Last week, the industrial and office park developer announced the good news about a $92 million expansion of its Highbrook office park in East Tamaki, Auckland where it owns half the development. The first stage would be a $43 million construction of The Crossing and include infrastructure, retail, office and hotel space (a Quest hotel).
This week, John Dakin, chief executive of the manager of the trust, revealed a board decision to reduce distributable earnings of 90% down to 80% to help fund the new development."We expect an acceleration in our development programme as the economy strengthens. Retaining additional earnings will help fund our development business, ultimately contributing to greater capital growth for our unitholders."
The share price was relatively unmoved, following an easing trend at the end of 2010.Meanwhile, the Crossing will comprise 27,000sq m of mixed use space including the hotel, plus 17,300sq m of office space and 4400sq m of retail space.
Committed tenants include New Zealand Post and Westpac, and other retail commitments are being finalised.
The 108ha Highbrook Business Park is currently about 45% developed with 230,000sq m leased. Mr Dakin said it would a completion value of about $1 billion, providing $35 million in earnings per year for its joint venture owners.
Chris Hutching
Wed, 13 Apr 2011
Wed, 13 Apr 2011
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Goodman Property - good news and bad news
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