8 Aug 2012

Claim confidence returning to property investment

10:44 am on 8 August 2012

The chief executive of the property investment company Goodman Property Trust says confidence is returning to both the investment and development markets.

On Tuesday, Goodman held its annual general meeting in Christchurch, where it holds 10% of its assets.

Chief executive John Dakin says businesses are gaining confidence, which is an encouraging sign. He says the investment market is strong and development activity is continuing in line with an economy that looks like it's recovering.

Mr Dakin says in the past 12 months the trust has signed nearly $100 million of projects with building under way and that's its best year since 2007.

He says the trust is part of the broader global Goodman group and demand for development is strong, particularly in China.

Separately, New Zealand's largest listed property company, Kiwi Income Property Trust, also held its annual general meeting in Christchurch on Tuesday.

The trust owns malls like Auckland's Sylvia Park and LynnMall, and office buildings including Auckland's Vero Centre and Wellington's Majestic Centre.

It told investors it was encouraging that 85% of its property portfolio is either in the recovering retail sector or the Auckland office market, which it says is looking positive with an improving demand situation.