15 Apr 2014

Goodman signals more developments

8:03 am on 15 April 2014

Goodman Property Trust has a lot of other potential developments on the drawing board, as well as the three it has just announced, its manager says.

Goodman said on Monday it would develop three industrial properties worth a combined $44.4 million.

The facilities, all in Auckland, include two for Steel & Tube - in Otahuhu and the Highbrook Business Park in East Tamaki - and one for Ford, which will relocate from another Goodman property in Wiri to Highbrook.

Goodman chief executive John Dakin said that brought to 15 the company's new developments worth more than $165 million dollars since early 2013.

And he said the company was looking at other developments for the trust.

"The demand in the development area is strong, in line with an economy that's picking up and a recovery that seems more broad based," Mr Dakin said.

"It's a continuation of working through our land bank that we've got. When times are slow there's a strong cost to carrying land but in times like this it's a really big asset for the business in terms of attracting these sorts of customers.

"That's really our main focus, is working through that and funding that through our existing debt facilities and also selling some assets."

Goodman would fund the developments through existing debt facilities and by continuing to sell assets, Mr Dakin said.

The last property the trust sold was the Gateside Industry Park, in Penrose, in February for $37.2 million.

The company's next scheduled announcement is its annual result in mid-May.