Goodman Property Trust renews debt funding 

Source: ONE News

Goodman Property Trust says it has completed a refinancing programme with the renewal of more than $900 million of debt funding facilities.

All the main debt facility had been renewed, the NZX-listed industrial and business property investor said on Tuesday.

This provided up to $630m in debt funding from a syndicate of five trading banks including ANZ, BNZ, Commonwealth Bank of Australia, Kiwibank and Westpac.

The trust has also completed the renewal of $272m of debt facilities in joint venture investments.

Goodman (NZ) Ltd chief executive John Dakin said that while the cost of the new facilities was higher than previously, the early debt renewals provided security to the business and its debt funding requirements.

Dakin says the company was pleased to report the refinancing programme was completed a year ahead of its expiry and in a challenging credit market.

"The  commitment of the major trading banks to the new three year facilities reflects the strength of (the trust's) business and investment strategy."

The level of debt within the portfolio equated to 31.4% of property assets, rising to 33.5% when all current commitments were included.

Still only partly drawn, the trust's debt facilities could provide more than $200 million in additional funding capacity.

The increased cost of funding had been taken into account in the forecast cash distribution of 10 cents per unit for this financial year.