Goodman Property sells APN News site for $15.6m

Tuesday 9th December 2008

Goodman Property Trust sold the APN News & Media building in Manukau to a syndicate of local investors for $15.6 million as part of its strategy to divest non-core assets to strengthen its balance sheet.

The property investor also said it had commitments from clients for its Highbrook Business Park in South Auckland, according to a statement from the trust's manager, Goodman (NZ).

Building products company CSR Viridian (New Zealand) has committed to a purpose-built warehouse and office facility of 6,517 square metres at Highbrook, it said.

The development is expected to be completed in mid-2009 for an estimated total project cost of $11.8 million. The 12 year lease has further rights of renewal and includes an expansion option over adjoining land, according to the statement.

Goodman owns 50% of Highbrook Development, the joint venture that is developing the site.

"This is the sixth development pre-commitment undertaken by the Trust and its development partners this financial year," Goodman (NZ) chief executive John Dakin said. "The total value of all these new pre-commitments is $68.4 million."

Goodman Property units rose 0.9% to $1.07 and have fallen about 27% this year.

By Jonathan Underhill

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