New Zealand-listed Goodman Property Trust (GMT) has bought T&G Global’s head office and distribution facility in Auckland, New Zealand for NZ$65m (US$41.8m), reflecting a passing yield of 5.1%.
The 5.8-hectare industrial property provides 17,989 sq.m. of mixed warehouse and office space in the city’s Mt Wellington area, the buyer said in an announcement.
GMT acquired the 2-6 Monahan Road property on a sale-and-leaseback basis, following the conditional purchase of another Auckland property let to T&G in December 2018.
“With historically low vacancy and limited land available for new development, Auckland’s industrial market is at capacity,” said John Dakin, CEO of Goodman (NZ) Limited, the manager of GMT.
“Securing strategic brownfield sites is essential if we are to meet our customers’ supply chain requirements over the next 5-10 years.”
The property has site coverage of just 31%, presenting opportunities for further redevelopment and intensification of use. The deal is expected to close in late September.
The transaction comes after Australia’s largest superannuation fund, AustralianSuper, and logistics property firm Logos teamed up to develop a NZ$500m (US$333.2m) logistics estate in Auckland in July this year.
High levels of tenant demand pushed the overall vacancy rate in Auckland’s industrial real estate market to a record low of 1.5% in February this year, according to Colliers.
Colliers noted that Auckland experienced industrial combined office and warehouse face rental growth of 5% during year to end-H1 2019, with rents expected to increase about 3% over the next year.
GMT has a property portfolio worth $2.6bn and a market cap of about $2.7bn.
Goodman NZ is a subsidiary of Australian-listed Goodman Group, which is a cornerstone investor in GMT.