Goodman Property raises $45m

Goodman Property Trust, which recently had one of its managers poached by rival AMP NZ Office Trust, has raised $45 million through a private debt issue.

The seven-year bonds will pay 7.58 percent per annum, and are rated BBB+ Standard & Poor’s. The proceeds will be used to repay bank debt and diversify the trust’s funding sources.

Goodman Property raised $150 million in December to pay down bank debt, and as at March 31, the listed property investor had cut its banking facility to $280.1 million from $433.3 million a year earlier, according to its annual report. Still, total group borrowings were at $547.1 million, down from $549.4 million in 2009.

The bond issue, which was managed by ANZ National Bank, isn’t expected to have a material impact on operating earnings.

The placement was in response to an inquiry from wholesale investors.

Shares in the listed property trust rose 1.1 percent to 96 cents, and have dropped 12 percent this year.

- BusinessDesk