Goodman Property completes NZ$900 mln debt refinancing

Tuesday 6th January 2009

Goodman Property Trust said it completed refinancing of more than NZ$900 million in three-year debt facilities, giving the investment group more funding certainty in tight credit markets.

Its main facility is for up to NZ$630 million with a syndicate of five banks - ANZ Bank, Bank if New Zealand, Commonwealth Bank, Kiwibank and Westpac, Goodman said in a statement.

"While the cost of the new facilities is higher than previously, the early debt renewals provide real security to the business and its debt funding requirements," said John Dakin, chief executive of the trust's manager, Goodman (NZ).

Increased funding costs were reflected in the trust's decision in November to reduce its forecast cash distribution to 10 cents a unit this financial year, from 10.25 cents.

Dakin said debt in the portfolio amounts to 33.5% of property assets including all current commitments. The facilities are only partly drawn, with some NZ$200 million still available, he said.

Total assets at September 30 were NZ$1.62 billion, up from NZ$1.6 billion at March 30, the trust said in November.

Units of Goodman Property rose 1% to 97 cents and have declined 34% in the past year, lagging behind the NZSE Property Group Index's 27% decline, according to Reuters data.

By Jonathan Underhill

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