Goodman Property Trust's manager is positive about its outlook with earnings growth coming from both rising rental income and from new tenancies as current developments are completed.
The trust has announced 10 new projects, worth nearly $87 million, since March this year, its strongest period of development activity in more than five years.
The trust is also buying Fonterra's new head office for $92.6 million from its manager's owner, the Australian-listed Goodman Group.
The building is under construction on Auckland's Viaduct and the trust is paying a 5% deposit now with the balance expected to be paid in February 2016.
The purchase price implies a cash yield of 8%.
John Darkin, chief executive of the trust's manager, says a number of factors made the Fonterra head office an attractive purchase for the trust.
"We're an active investor in there already, so we own the Vodafone, Microsoft HP and also KPMG facility and then also at the other end of Fanshawe Street we also own Air New Zealand."
Mr Dakin says the Fonterra development sits between the two, so it's a positive location.
He says the trust can comfortably fund its current workbook and the acquisition of Fonterra.
On Wednesday, Goodman Property Trust's first-half profit more than doubled to $65.4 million, largely because of the rising values of properties and interest-rate hedges.
The profit the trust can distribute rose 21.3% to than $45.6 million for the six months to September, with rental income rising 25%.
