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GOODMAN GROUP Capital/Financing Update 2005
64998_rns_2005-05-08_7ee4f026-9281-42df-816c-ecb96bd0d32a.pdf
Capital/Financing Update
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ASX Release - Macquarie Goodman Group ("Macquarie Goodman")
Macquarie Goodman continues to build quality portfolio
9 May 2005 Date: Immediate Release:
Macquarie Goodman is pleased to announce that it has secured leases covering approximately 48,000 sqm to a number of new and existing customers throughout Australia and New Zealand.
Chief Operating Officer David van Aanholt commented that demand is high from large corporates for well located, serviced industrial land in Australia and New Zealand. "These latest transactions are consistent with our investment objectives of securing major organisations on long-term lease profiles."
Since early January, we have committed around 116,000 sqm of new space which will generate annual income of \$12.2 million. This space will produce an average return of 8.2% based on project values of \$148.8 million and a weighted average lease term of $11.3$ years.
| Property | Customer | Area | Lease Term |
|---|---|---|---|
| sqm | vears | ||
| Australia - New South Wales | |||
| Talavera Corporate Centre, | Toshiba | 5,550 | 10 |
| North Ryde | |||
| Centenary Distribution | Coates Hire | 4,800 (office) | 15 |
| Centre, Stage 2, Moorebank | Operations | 15,000 (hardstand) | |
| Victoria | |||
| Clayton Business Park, | Craftsman Press | 8,246 | 15 |
| Clayton | |||
| Chifley Business Park, | Visy | 3,310 | |
| Mentone | |||
| Queensland | |||
| Acacia Link Industrial Estate, | Target | Carl Carl 4,190 |
$5 < \overline{\sim}$ |
| Acacia Ridge | |||
| New Zealand - Auckland | |||
| Savill Link, Otahuhu | Furniture City | 6,850 | 10. |
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In summary, the latest transactions are as follows:
Commentary on the above transactions appears in Appendix 1.
"We are certainly encouraged by the strong level of enquiry for precommitted business space across the board but also note that leasing enquiry for existing business space continues to be prosperous," Mr van Aanholt said,
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Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariedoodman.com
Macquarie Goodman
Chief Executive Officer Gregory Goodman said, "Through the principles of our Customer Service Model, we are meeting the specific requirements from planning and developing a customer's new corporate home to owning and managing it. In turn, investors benefit from increasing and recurring revenue streams from the various divisions of the group."
For further information, please contact Macquarie Goodman:
Gregory Goodman Chief Executive Officer +61 2 9230 7400
Jayne Gerrie Corporate Communications Manager +61 2 9230 7400
Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariedoodman.com
Appendix 1
Australia - New South Wales
Talavera Corporate Centre, North Ryde, NSW
Toshiba (Australia) Pty Limited has committed to 5,500 sqm of space in Building C, which follows Sanofi-aventis' 7,000 sqm precommitment at Building D announced earlier this year, bringing total commitments at the property to 88%.
Located in the heart of the North Ryde hi-tech area just 14 kilometres north west of the Sydney CBD, Talavera Corporate Centre consists of two recently completed office towers fully occupied by CSC Australia, together with an adjoining development site of 1.9 hectares which will accommodate Toshiba and Sanofi-aventis in Buildings C and D on completion in February 2006 and December 2005 respectively.
Toshiba, a world leader in high technology, will lease 5,500 sqm, or 71% of Building C, for a lease term of 10 years on a net annual commencing rental of \$1.65 million, which includes 210 car parking spaces. The lease provides two options of five years each and the rent will be reviewed annually at a rate of 3.5%.
Centenary Distribution Centre, Stage 2, Moorebank, NSW
Australia's largest equipment hire company, Coates Hire Operations, has committed to 4,800 sqm of office/warehouse space and 15,000 sqm of hardstand at Centenary Distribution Centre, which is due for completion in July 2006.
Coates will lease the facility for an initial term of 15 years at current market rentals. The rent will be reviewed annually with increases at the greater of CPI or 3.0%, excluding the commencement of years five and 10 which will be reviewed to market.
The project will incur capital expenditure of \$8.1 million and total project cost of \$17.0 million. It is anticipated to provide a return of 8.3% on total project costs.
This transaction introduces a new customer to Macquarie Goodman's portfolio and launches the transformation of this older style warehouse/distribution centre to a brand new contemporary facility. $\mathcal{M}_{\rm eff}$ is an
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Victoria
Clayton Business Park, Clayton, Vicebre
Craftsman Press, one of Melbourne's largest sheet fed commercial printers, has precommitted to an 8,246 sqm production, warehouse and office facility at Clayton Business Park. Craftsman Press is a fully owned subsidiary of the Blue Star Print Group.
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Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Svdney NSW 2000 GPO Box 4703 Sydney NSW 2001
Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariedoodman.com
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Macquarie Goodman
Clayton Business Park is a 31 hectare site located approximately 20 kilometres south east of the Melbourne CBD. Craftsman Press is the second precommitment at this property following Colorific's initial commitment for a 3.500 som facility completed last year.
Craftsman Press will lease its new 8,246 sqm facility, which is due for completion in January 2006, for a lease term of 15 years on a net annual commencing rental of \$0.8 million. The lease provides two options of five years each and will be reviewed annually at a rate of 3.0%.
The project will incur additional capital expenditure of \$7.2 million and total project costs of \$9.3 million, delivering yields of 9.4% and 8.5% respectively.
It will provide a substantial uplift to the property as the brand new contemporary facility will replace an existing older-style manufacturing facility on the high exposure frontage to Westall Road.
Chifley Business Park, Mentone, Vic
The quality and location of Chifley Business Park continues to produce strong results for Macquarie Goodman. Long-term customer Visy has agreed to extend its existing warehouse/office facility to a total 20,400 sqm.
Visy's 3,310 sqm extension, which is on contemporaneous lease terms, will incur total project costs of \$2.1 million, yielding 8.9%. The extension is due for completion in October 2005.
The units, initially developed by Macquarie Goodman on a speculative basis, are now fully committed following recent leases to a diverse group of high quality customers including Acushnet Australia, Cross Over IT, Southcott, Swing Gifts and Ultra-Pak (Australia).
Combined, the recent leases totalling 20,900 sqm reflect a weighted average lease term of 6.6 years and an annual net commencing rental (net of land rent) of \$1.29 million. The units incurred capital expenditure of \$14.4 million, reflecting an average yield of 8.9%.
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Queensland
Acacia Link Industrial Estate, Acacia Ridge, QId [14]
Leading Australian retailer Target has leased 4,190 sqm of space in Building 4 at Acacia Link Industrial Estate. The transaction follows Macquarie Goodman's acquisition of the site and precommitment to AUSDOC in November 2004.
Target has leased the premises for an initial term of five years at a net annual commencing rental of \$0.4 million per annum. The rent will be reviewed annually at $4.0\%$ .
Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariedoodman.com
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New Zealand - Auckland
Savill Link, Otahuhu
Furniture City, a prominent New Zealand retail brand, has committed to lease a new 6,850 sqm warehouse/distribution facility, incorporating office accommodation. This development site is jointly owned by Macquarie Goodman and NZX-listed Macquarie Goodman Property Trust.
The Furniture City facility is the third development to commence at Savill Link, following precommitments from Toll Logistics and Nylex New Zealand, which are currently under construction and scheduled for completion in July and August 2005 respectively. Savill Link is now 21% committed.
The project, which is expected to be completed in October 2005, will incur total capital expenditure of \$6.4 million and total project costs of \$7.8 million, providing a yield of 8.7% upon completion to the joint owners.
Furniture City's 10 year lease delivers a total net annual commencing rental of \$0.7 million with two yearly rent reviews. Occupying a site of 1.15 hectares, Furniture City also has expansion rights for three years to lease a further 1,732 square metres.
Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001
Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariedoodman.com