Forum Archive Index - April 2001

[daniel <daniel.st@xtra.co.nz>]

MACQUARIE GOODMAN INDUSTRIAL TRUST            2001-04-09  ASX-SIGNAL-G
                          HOMEX - Sydney
                          +++++++++++++++++++++++++
                          Macquarie Goodman Funds Management Limited is
pleased to announce
                          that Macquarie Goodman Industrial Trust
("MGI") has secured a
                          strategic development site called "The Gate"
in Neilson Street,
                          Penrose, Auckland, New Zealand, from Willis
Bond & Co. This exciting
                          venture launches MGI into the New Zealand
industrial property market.
                          The site is located in an established
industrial precinct within
                          central Auckland and benefits from significant
infrastructure
                          including excellent road and rail services and
easy access to port
                          and airport facilities.
                          MGI is acquiring the first stage of a
two-stage development at The
                          Gate, which is a strategic 13.8 hectare site
with an estimated
                          completion value of A$60 million. Stage 1 has
an estimated end value
                          of A$25 million. This stage comprises two
buildings with the first
                          building being predominantly committed on a
long term lease to one of
                          MGI's existing tenants in Australia, Carter
Holt Harvey Limited
                          ("CHH").
                          The CHH building has an area of approximately
12,500 sqm plus
                          substantial canopies. CHH has committed to a
12 year lease at a
                          rental of approximately A$1.15 million per
annum and has been
                          purchased for $10.9 million producing an
initial yield of 10.4%. The
                          building is being constructed by Haydn &
Rollett and is due for
                          completion in late April 2001.
                          The balance of the land of stage 1 has also
been secured by MGI and
                          will accommodate some 20,000 sqm of additional
warehouse space. This
                          space will be developed on a precommitted
basis. Willis Bond & Co are
                          managing the stage 1 development in
partnership with MGI. MGI has
                          also secured a first right to acquire any
development in Stage 2. It
                          is expected that the balance of developments
on the site will
                          generate similar returns to MGI to those
achieved on the CHH
                          building.
                          Acquiring the property through a management
partnership with Willis
                          Bond & Co. has enabled MGI to achieve superior
yields on the
                          investment.
                          CHH is Australasia's leading and one of the
world's largest forest
                          products company. CHH is listed on both the
New Zealand and
                          Australian Stock Exchanges. It recently
celebrated its first 100
                          years in business and is currently the second
largest company in New
                          Zealand and the 32nd largest in Australia,
with sales of NZ$3.2
                          billion.
                          "This is a positive and significant move for
MGI into the New Zealand
                          market. We are not only delighted with the
acquisition of The Gate
                          but also to be working in partnership with a
professional
                          organisation like Willis Bond", said Mr
Gregory Goodman, Chief
                          Executive Officer of Macquarie Goodman.
                          Mr Goodman, who has substantial property
experience in New Zealand,
                          said: "Over time, we would be comfortable with
approximately 10% of
                          the portfolio invested in New Zealand,
provided the opportunities
                          were as strategic and accretive as The Gate.
It is also pleasing that
                          we can now offer our investors and
importantly, our tenants,
                          opportunities in New Zealand".
                          Mr Malcolm McDougall, Chairman of Willis Bond
& Co, said: "Macquarie
                          Goodman is a leading industrial property
company in Australia and its
                          move to New Zealand is indeed an exciting one.
Their vast experience
                          in the industrial property market and long
term commitment will
                          greatly benefit The Gate's future as well as
the tenants occupying
                          the property".


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