23 Mar 2010

Turnaround seen in industrial property market

8:31 am on 23 March 2010

Goodman Property Trust says it is starting to see a slow but steady turnaround in the industrial property market.

The trust has signed a contract with Kmart to build a purpose-built $19 million warehouse and office for the retailer at its industrial park in Manukau.

Kmart is the third large corporate that Goodman has secured in the past six months, following similar design-and-build contracts with bluechips Ingram Micro and IBM.

Goodman funds the construction and then leases the building back to tenants.

The trust's chief executive, John Dakin, says its latest deal is an encouraging sign that business confidence is improving.

Half its industrial park in Manukau has now been tenanted, he says.