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GHP ann re Interest Rate Hedging

Document date:  Tue 14 Mar 2000
Published:  Tue 14 Mar 2000 00:00:00
Document No:  204011
Document part:  A
Market Flag:  N


HOMEX - Sydney                                                        

Goodman Hardie Management Australia Limited ("Goodman Hardie"), the
Responsible Entity of Goodman Hardie Industrial Property Trust (the
"Trust"), advises that the Trust has entered into new hedging
arrangements over $100 million of debt, effectively closing out all
of its existing swaps.

Utilising the intrin0
sic value of the Trust's existing swaps, Goodman
Hardie has entered into two new $30 million swaps with the National
Australia Bank Limited and one new $40 million swap with the
Australia and New Zealand Banking Group Limited. 

The three swaps have staggered start dates ranging from 9 March 2000
through to 5 May 2000. The swaps are in place for three years rolling
at 90 day intervals. The weighted average rate for the three swaps
is 5.8%.

The Trust has agreed a "knock out" 0
level of 7.0% on all three swaps.
If the 90 day bank bill rate is above the knock out level on any
rollover date, the floating 90 day bank bill rate would be payable
for that quarter only. 

Mr David van Aanholt said that "The pure three year swaps were
currently trading above 7.0%. Also the Trust has negotiated this swap
strategy to mitigate interest rate risk up to a rate of 7.0% over the
medium term. In effect, this allows for an increase of more than 110
basis points over0
 the 90 day bill rate at the close of business
yesterday. Market consensus suggests such an increase is unlikely".

Mr van Aanholt also commented that "By staggering the start dates of
the swaps, the Trust has been able to ease any short term spike in
interest rates. The Trust is comfortable with the floating component
of its debt given that it has plans to sell non-core assets over
the next 12 months".

The remaining Trust borrowings of $86 million are at floating
interest r0
ates. The hedged component comprises 54% of total
borrowings. We will consider obtaining interest rate cover for a
further 20% to 25% of the Trust's borrowings if medium term "vanilla"
swaps become more attractive.

For further information, please contact:

Mr David van Aanholt
Goodman Hardie Management Australia Limited
Level 10
60 Castlereagh Street
Sydney NSW 2000
Tel: (02) 9230 7401