Macquarie and Multiplex sign multi-million deal

By Chris Hutching

Friday 14th May 2004

Listed Macquarie Goodman Property Trust has confirmed analysts' positive views about the stock after its strong profit result this week, which included the announcement that another Australian property manager, Multiplex, is buying one of Macquarie's "surplus" shopping centre properties in Christchurch for $40 million.

Macquarie Goodman Property Trust (formerly Colonial First Property Trust) is positioning itself as a key player in the industrial property market while Multiplex has been acquiring properties ahead of a listing on the Australian Stock Exchange.

Multiplex late last year contracted to buy the ASB Centre in Auckland for $112 million and its building division has been active in New Zealand for several years.

Meanwhile, Macquarie Goodman's 41% rise in after-tax surplus to $8.06 million comes before property revaluations of $4.3 million, which are required to be reported as part of the surplus under accounting rules.

But chairman Jim McLay said the company had taken the responsible position of excluding the amount from the dividend distribution pool that would be paid to shareholders.

The proceeds of the sale of the South City Shopping Centre to Multiplex for $40 million will be reported in the next interim result.

The trust has also recently settled the sale of two Auckland assets  BNZ Vincent Street and Greenpark Office Park over the year plus Unisys House in Wellington, for a combined $58 million, which has been used to reduce debt.

At the same time, the trust has signed contracts to buy several Auckland industrial properties, including a 26.5 ha development site in Otahuhu for $34.4 million (to develop a $30 million industrial park over the next five years), a 50% interest in two new facilities at The Gate Industry Park in Penrose for Recall and Norman Ellison, for $5.8 million and the 8.1ha Fletcher Challenge Complex at 810 Gt South Rd, Penrose for $72 million.

In recent months the trust entered a co-ownership arrangement with Australian-listed Macquarie Goodman Industrial and Macquarie Goodman Management acquired the manager of the trust for $5.7 million from Colonial First State.

Brokers are rating the trust a "hold" at current levels around $1 per unit.

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