Goodman Property considers bonds issue

Goodman Property Trust, the $1 billion listed industrial landlord, is considering raising cash by issuing more bonds.

John Dakin, chief executive of Goodman's manager, said although the banking system was in good shape, the evaporation of mezzanine funding had left a big gap.

"Banks remain primary lenders but many participants in the industry need to find new equity," he said.

Sources of cash apart from bonds included KiwiSaver and sovereign wealth funds, he said.

Goodman's $150 million corporate bond issue late last year could be the first of several bond issues, he said.

"We expect to become a repeat issuer when that market is available and seek to extend the term of our debt," Dakin said.

He addressed a Property Council breakfast yesterday in Auckland where Forsyth Barr senior investment analyst Jeremy Simpson also spoke about raising funds.

Goodman was the only listed property entity to turn to the corporate bond market so far, Simpson said, but he expected others to follow.

The bonds are direct, secured, unsubordinated, fixed rate debt obligations, Goodman announced.

The interest rate for Goodman+ Bonds is 7.75 per cent annually and the bonds are for five years, maturing on June 19, 2015.