Goodman plans Auckland projects worth $45.8m

Goodman Property Trust chief executive John Dakin.

Goodman Property Trust, the country's second-biggest listed property investor, has ratcheted up development plans with four new industrial projects in Auckland worth $45.8 million.

The Auckland-based property firm's developments will add 27,112sq m of rentable area to its portfolio, which it expects will generate annual revenue of $3.4 million, trust manager Goodman (NZ) said.

Goodman Property will develop a manufacturing and warehousing facility for Orora Packaging at its M20 Business Park and a new warehouse next to the Orora development slated for an October 2016 finish at a cost of $26.9 million.

It will also increase the planned CSR Viridian expansion at Highbrook Business Park, which is expected to be done in March next year, and build warehouse facilities for Holden (New Zealand) at its Savill Link estate by May 2016, for a combined cost of $18.9 million.

"Strong property fundamentals and continuing customer demand is allowing us to accelerate our development programme," said Goodman chief executive John Dakin.

"With new businesses choosing to locate to design-built premises at our estates and existing customers exercising expansion options, we are targeting $100 million to $150 million of new development projects annually."

Goodman Property has been increasing its development work, including a joint venture with Singapore sovereign wealth fund GIC, after selling $150 million of properties last year as part of a strategy to improve the quality of its portfolio.

The property investor's property portfolio and development projects were valued at $2.1 billion as at March 31.

Units in the trust closed unchanged yesterday at $1.17. The stock is rated an average "hold" based on six analyst recommendations with a mean target price of $1.16.