You are using an older browser version. Please use a supported version for the best MSN experience.

Goodman buys Auckland building for $62m

NZ Newswire logoNZ Newswire 12/05/2017 Rebecca Howard

Goodman Property Trust's joint venture with Singapore government-owned GIC has agreed to buy Bayleys House, a recently completed office building in central Auckland, for $62 million, Goodman Ltd, the trust's manager, said.

The 8106 square meter low-rise office building adjoins the Fonterra Centre on the corner of Gaunt and Halsey Streets in Auckland's VXV Precinct, an area located between Victoria Park and the viaduct.

The acquisition, which remains conditional on the approval of the freehold land owner, is expected to settle in June.

"This is a high-quality acquisition that extends and diversifies the joint venture's portfolio of Viaduct properties,'' said Goodman Ltd chief executive John Dakin in a statement to the stock exchange.

''The partnership strategy provides scale for GMT and gives the trust greater exposure to Auckland's fastest growing commercial precinct,"

Predominantly leased to real estate specialists Bayleys, technology provider IBM and law firm Mayne Wetherell, the new leases incorporate fixed review structures and have a weighted average term of nine years.

After this purchase and the purchase of the Datacom Building, which settles on Friday, the joint venture will own seven buildings in the VXV Precinct.

With a value of more than $470 million, the portfolio will provide over 88,000 square metres of office accommodation to around 20 customers. The portfolio has an occupancy rate of 96 per cent.

image beaconimage beaconimage beacon