Macquarie's $25m Auckland purchase

Sunday 6 June 2004

Macquarie Goodman Property Trust is setting its sights on Auckland CBD property, following its announcement that it has an unconditional deal to buy a Viaduct Harbour building for $25.8 million.

By The Landlord

Trust chief executive John Dakin said Macquarie was keen to find more Viaduct buildings because the city's waterfront had good prospects.

"If you look at what's happening down there, there's plenty of demand," he said after the deal to buy HP House at 4 Viaduct Harbour Ave from rival Kiwi Income Property Trust.

The land is leased from Viaduct Harbour Holdings and the ground lease on the six-level 7369sq m office block comes up for its first renewal next year, Dakin said. But this had been factored into the purchase price.

"We've assumed an increase in ground rent in terms of our pricing of the asset," he said. "That's why we bought it on a 9.7 per cent yield rather than 8.5 per cent."

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