16 May 2013

Property trust says it has good development capacity

7:07 am on 16 May 2013

The manager of Goodman Property Trust says it has significant development capacity.

The trust recently completed the rest of the Highbrook Business Park in Auckland which it developed in conjunction with the manager's owner and the major unitholder Goodman Group.

Highbrook is worth more than $650 million.

The manager's chief executive John Dakin said the trust has at least $100 million it could spend and the trust's debt level is now below its target band of 35 - 40%.

Mr Dakin says the trust has more than $100 million of capacity for development. The trust sold about $35 million of assets last year and it expects to sell another $50 million this year.

On Wednesday, the manager said the Goodman Property Trust lifted annual net profit more than 92%, although distributable profit rose a more modest 12.6%.

Mr Dakin said the outlook for the trust is promising and development activity has improved in the last couple of years.

He said the levels of inquiry now are as high as they have been for the last five years and a number of businesses are looking to expand their existing facilities, although often in a measured way.