Goodman Property Trust, New Zealand's largest listed property investor by market value, will spend $28 million on two new industrial plants and an office building at its Highbrook Business Park.
The additional space will add $2.2 million to annual rent and a further 11,140 square metres of lettable area, the Auckland-based property investor said in a statement. The latest development brings the company's development spending to $112.1 million over the past 12 months.
"A positive business environment is supporting the rapid expansion of Highbrook Business Park," said chief executive of the trust's manager, Goodman (NZ), John Dakin. "With the award winning estate 100% occupied, sustained customer demand is the catalyst for these new development initiatives."
Goodman has been selling non-core assets to fund development, having disposed of $150 million worth of property in the nine months through to Sept. 30. It has also entered into a joint venture with Singapore's sovereign wealth fund, GIC, to co-invest in its Auckland Viaduct Quarter development valued at $313 million.
Shares of trust fell 1.3 percent to $1.18 and have gained 4.8 percent since the start of the year. The stock is rated an average of 'hold' based on six analysts surveyed by Reuters, with a median price target of $1.10.