GIC-Goodman Property JV to extend Auckland CBD footprint buying $86.2M building from Fletcher

Friday 27th March 2015

Wynyard Precinct Holdings, a joint venture between Goodman Property Trust and Singapore government owned GIC, has agreed to buy an office tower in Auckland's Wynyard Quarter from Fletcher Building for $86.2 million.

Fletcher Construction expects to complete the office building on the corner of Gaunt and Daldy Streets, which is substantially leased to Datacom, in March 2017. As well as being part of the group that has conditionally agreed to buy the building, Goodman Property has agreed to fund the cost of the development until settlement, it said. Fletcher has separately retained Goodman Group to provide development management services on the project.

The Overseas Investment Office approved GIC's investment in the joint venture in January. It owns 49 percent of a property portfolio initially valued at $313 million and with a target to grow to $500 million. GIC is a global investment firm with over US$100 billion of assets under management.

John Dakin, chief executive of Goodman Property's manager, said the deal with Fletcher "was facilitated through Goodman’s relationship with Fletcher Building." They also worked together to develop Fonterra's corporate headquarters on the same site and are developing the six level VXV3 building directly behind the Fonterra building.

"Neighbouring our existing Viaduct assets and in an area of substantial private and public development, it’s a compelling investment opportunity," Dakin said.

Since announcing the JV in November, GIC has quickly extended its property interests in New Zealand, buying into five shopping centres via a joint venture with Australia's Scentre Group, which owns Westfield malls in Australia and New Zealand.

Goodman Property shares fell 0.4 percent to $1.185 and have gained 23 percent in the past 12 months.

BusinessDesk.co.nz

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