Page 42 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
2. INVESTMENTINJOINTVENTURE(CONTINUED) 2.3 WPHL Stabilised properties
FINANCIAL
Of ce park
VXV Precinct Of ce Park, Auckland
Year ended 31 March 2017 Year ended 31 March 2016
$ million
STATEMENTS
Opening valuation
317.1
222.9
Acquisitions
-
93.4
Net expenditure
7.0
0.4
Fair value movement
-
0.4
Disposals
-
-
Closing valuation
324.1
317.1
Valuer
CBRE, Colliers
Colliers
Net lettable area sqm
62,366
62,366
Market cap rate
6.7% - 8.5%
7.0% - 8.5%
WALT Occupancy years
100% 8.9
100% 7.9
SUBSEQUENT EVENTS
In May 2017, the joint venture agreed to acquire Bayleys House in VXV Precinct, Auckland for $62.3 million from Goodman (Wynyard Precinct) Limited, an entity related to Goodman (NZ) Limited, the Manager of GMT. The acquisition, which remains conditional on the approval of the freehold land owner, is expected to settle in June 2017.
In May 2017 the joint venture completed the acquisition of the Datacom building in VXV Precinct, Auckland for $86.2 million.
continued
For the year ended 31 March 2017
2.4
$ million
WPHL Borrowings
Total bank facilities
Apr 17 - Sep 19
Facility
157.0
Expiry
Drawn
157.0
Undrawn
-
Facility
157.0
Expiry Drawn
Apr 17 - Sep 19 156.5
Undrawn
0.5
2017
2016
WPHL’s bank facility is provided by Westpac New Zealand Limited (“Westpac”). At 31 March 2017 it had a weighted average term to expiry of 1.8 years (2016: 2.8 years). This facility is secured over the assets and undertakings of the WPHL joint venture and is non-recourse to WPHL’s shareholders. The WPHL joint venture has given a negative pledge which provides that it will not create or permit any security interest over its assets. The principal nancial ratios which must be met are the ratio of earnings before interest and tax to interest expense, and the ratio of nancial indebtedness to the value of the property portfolio.
SUBSEQUENT EVENT
In April 2017, WPHL’s shareholders provided advances to the company of $45.0 million to enable it to repay $45.0 million of maturing bank borrowings to Westpac. In May 2017, WPHL’s shareholders provided advances to the company of $86.2 million to enable it to purchase the Datacom building.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
40 NOTES TO THE FINANCIAL STATEMENTS