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Strong demand for new business premises has helped the country's largest listed industrial landlord, Macquarie Goodman Property Trust, drive up its after-tax profit by almost 50 per cent.
Jim McLay, chairman of Macquarie Goodman (NZ), which manages the trust, said the business had grown in the past year and had leased 125,600 sq m since March last year.
The trust made a net profit after tax of $51.8 million, 48 per cent up on last year's $35.1 million.
The trust owns properties valued at $1.2 billion, the largest being the $100 million Central Park at Greenlane and the $100 million Gate at Penrose.
The trust's outlook was good because it had a clear strategy and a proven business model, he said.
"With an increased development capability, this same strategy will ensure the trust is well positioned to take advantage of a changing property and investment environment over the coming years."
The trust is enjoying good fortunes from an improving economy and its market capitalisation grew from $623 million last year to $1 billion.
McLay said the bulk of its leasings in the last year came from tenants who had not previously leased space from Macquarie.
Three-quarters of the space went to new tenants, including Pernod Ricard which leased offices at 4 Viaduct Harbour Ave in the city, Restaurant Brands which leased space at Central Park in Greenlane, and Supercheap Auto which had taken premises at Westney Industry Park in Manukau, McLay said.
The trust had also spent $190 million expanding its property portfolio.
In the last year it has spent $75.2 million buying properties with development potential in Otahuhu and Christchurch.
It spent a further $74.5 million buying investment properties at Penrose and Christchurch.
Macquarie, which owns 26 buildings with 768,000 sq m, has 190 tenants.
John Dakin, chief executive of the trust's manager, said the trust had development opportunities worth at least $100 million in the next few years.
"There's a lot of buyers looking for a shortage of assets but with our own development capacity, we have an innate ability to grow," he said.
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