Goodman Property scales unit purchase plan after over-subscription

Goodman Property Trust, the second-biggest property investor on the NZX, has scaled its unit purchase plan after over-subscriptions top out.

The Auckland-based company has scaled applications to 77.95 percent after receiving $38.5 million of bids in the offer to unit-holders, some $8.5 million above its limit, the company says in a statement.

The UPP was seeking to raise $20 million at $1 per unit as part of an $80 million capital raising to partially fund its buy-out of Auckland's half-developed Highbrook Business Park.

Last year, Goodman Property raised the first $60 million from institutional investors in a private placement, meaning it raised a total of $90 million of new equity after the over-subscription.

The $186.6 million acquisition of the 100ha property in East Tamaki got investor approval last month after a special meeting.

Goodman Property is buying 25 percent of Highbrook Development from Goodman Group, the Australian parent of the trust's manager Goodman (NZ) and the remaining 25 percent from Fisher Highbrook, a company associated with the family of Sir Woolf Fisher, the original owner of the land.

The remaining 25 percent of Highbrook Business is being acquired from Fisher Highbrook.

Units in the property trust fell 0.5 percent to $1.015 in trading today. The stock is rated an average "hold" based on six analyst recommendations compiled by Reuters, with a median target price of $1.041.

(BusinessDesk)

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