Deutsche IT buys into North Ryde

The Macquarie Goodman Industrial Trust recently took another plunge into the Olympic zone with the $33 million acquisition of a 13.2 hectare site at Homebush.

Yesterday Deutsche Industrial Trust bought a 75 per cent interest in Foundation Macquarie Park Trust, which owns the North Ryde high-tech business park, Foundation Macquarie Park.

There is a unit-holder meeting proposed for April 3.

Deutsche paid $76.74 million, plus 75 per cent of the value of construction costs associated with the development of a new building on the site. These costs are estimated to be about $4.7 million.

The stake will yield an initial 8.4 per cent.

Deutsche has also secured first option to acquire the remaining 25 per cent interest within the next 13 months.

The acquisition will be funded by a combination of debt and equity, including a placement of 26.7 million new units at $1.50 per unit through underwriters Deutsche Bank and UBS Warburg.

In addition to the equity raised, Deutsche will increase borrowings by about $40 million.

The trust's general manager, Ben Lehmann, said the property was a perfect fit, increasing Deutsche Industrial's exposure to its preferred sector high quality business parks in one of its preferred markets, Sydney's North Shore.

The property, on the corner of Talavera and Lane Cove roads, will add to Deutsche's existing exposure at North Ryde, including a site at 33 Waterloo Road.

Recently the trust announced a 5.6 per cent jump in distributions for the December half, thanks to assets sales, revaluations and higher occupancy levels. This 7.5c a unit pay-out comes from a 30 per cent rise in net income to $14.8 million for the half.

Fuelling competition in the sector was the news on Monday that the AMP Industrial Trust had a contract to purchase a modern distribution centre on the South Gippsland Highway, Hampton Park, Victoria, for $20.3 million.

AMP Industrial has also completed the sale of 48-52 Kewdale Road, Kewdale, Western Australia, at the current valuation of $7 million.

Deutsche Industrial's units were suspended yesterday at $1.55. Trading resumes today.