Mgi Annual Report 00 PDF

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Goodman Hardie ANNUAL REPORT 2000

Contents
Highlights 2 Overview of GHP’s Results 3 Unitholders’ Timetable 2000/01 3 The Responsible Entity’s Report 4 Directors of the Responsible Entity 12
Investor Relations 13 Investment Objectives and Strategy 14 Property Portfolio Summary 15 Property Location Maps 16 Property Portfolio 17 Financial Report 35 Statements of Financial Performance 36
Statements of Financial Position 37 Statements of Cash Flows 38 Notes to the Financial Statements 39 Directors’ Declaration 58 Independent Audit Report 59 Corporate Governance 60
Unitholder Information 62 Questionnaire 63 Glossary of Terms IBC Corporate Directory BC
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At Goodman Hardie, we provide quality office and business park,
distribution/warehouse and industrial space to high profile companies.
This space provides superior working environments to our tenants
enhancing their performance and growth which in turn supports
1
GHP’s performance.
Goodman Hardie Industrial Property Trust (ARSN 091 213 839) (“GHP”)
Goodman Hardie Management Australia Limited (ACN 067 796 641) (“Goodman Hardie” or the “Responsible Entity”)
Triden Corporation Limited (ACN 000 123 071)
Please see Glossary of Terms for further definitions on the inside back cover.
Highlig
Y Increase in assets from $575 million to $634 million, up 10.4%.
Y Increase in profit from $15.2 million to $35.7 million, up 134.9%.
Y Increase in net tangible assets from $1.19 per unit to $1.21 per unit, up 1.7%.
Y Ongoing development success at CityWest Office Park, Pyrmont, Lidcombe Business Park
and TransTech Business Park, Lane Cove, in NSW.
Y Continued outperformance of both the UBS Warburg Industrial 300 Accumulation
Index and the ASX Listed Property Trust Accumulation Index.
Y Significant new leases agreed with Coca-Cola Amatil, Compaq, Fisher & Paykel, BBC Hardware,
One.Tel, Peoplesoft, Reckon, Reed Elsevier, Sun Microsystems and Unilever.
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Y Increase in undistributed realised profits from $0.6 million to $3.4 million, up 466.7%.
Y Initial Unitholders investing in GHP on listing at $1.00 enjoy a total return of approximately
15% per annum over the past five years.
Y Increase in the Unitholder base from 3,210 to 3,820, up 19.0%.
hts
$M $ ¢
700 700 1.25 10.55
10.50
600 600 1.20
10.45
500 500 1.15 10.40
GROWTH IN PROPERTY PORTFOLIO

10.35
400 400 1.10
GROWTH IN NTA AND DPU

10.30
30 June 1996 to 30 June 2000

300 300 1.05
10.25
1999/00
Book Value as at 30 June
*GHP listed July 1995

200 1.00 10.20
200
10.15
100 100 0.95
10.10
NTA
0 0 0.90 10.05 DPU
*
1995
1996
1997
1998
1999
2000
1995
1996
1997
1998
1999
2000
OVERVIEW OF GHP’S RESULTS UNITHOLDERS’ TIMETABLE 2000/01
June 2000 [$M] June 1999 [$M] Change [%] RECORD DATE EX-DISTRIBUTION DISTRIBUTION PAYABLE
Total assets 634.4 574.8 10.4 29 September 2000 25 September 2000 20 October 2000
Total liabilities 207.8 182.8 13.7 29 December 2000 21 December 2000 19 January 2001
Total Unitholders’ equity 426.6 392.0 8.8 30 March 2001 26 March 2001 20 April 2001
Net profit 35.7 15.2 134.9* 29 June 2001 25 June 2001 20 July 2001
Distribution to Unitholders 35.7 19.2 85.9*
Number of units on issue [M] 351.6 329.0 6.9
Net asset backing per unit [$] 1.21 1.19 1.7
Distribution per ordinary GHP unit [¢] 10.50 10.50 –
3
Distribution per GHPN unit [¢] 5.88 – –
Unit price as at 30 June [$] 1.18 1.18 –
Tax-sheltered proportion [%] 53.9 30.4 77.3
Secured borrowings to total assets [%] 30.1 28.2 6.7
Management Expense Ratio (MER) [%] 0.91 0.85 7.1
Number of Unitholders 3,820 3,210 19.0

* The June 1999 figures only include one month’s results after the acquisition of Capcount in June 1999.
The Responsible Entity’s
THE RESPONSIBLE ENTITY’S REPORT
We are pleased to present Dear Unitholder,
GHP’s fifth Annual Report
to Unitholders. Once again,
The year commenced with the successful acquisition of Capcount Property Trust. GHP then
GHP has experienced a embarked on the timely integration of Capcount’s commercial portfolio into GHP.
successful and exciting
year. Total assets have
Goodman Hardie’s funds and property management teams ensured the smooth merger
increased from $575 million of the portfolios.
to $634 million, up 10.4%.
GHP’s net tangible assets During the year, Goodman Hardie increased Unitholder value through significant leasing
(“NTA”) have increased from
$1.19 per unit to $1.21 per transactions to tenants including Coca-Cola Amatil, Compaq, Fisher & Paykel, BBC
unit with profits also up Hardware, One.Tel, Peoplesoft, Reckon, Reed Elsevier, Sun Microsystems and Unilever.
from $15.2 million
to $35.7 million. GHP has In seeking to further expand GHP and increase Unitholder value, Goodman Hardie assessed
experienced ongoing
development and significant a number of investment opportunities including its proposal to merge GHP with the
leasing successes during Flinders Industrial Property Trust in May 2000. The proposal was an unconditional scrip
the year.
offer of 0.952 GHP units for each Flinders unit. The offer equated to $1.15 per Flinders unit
Z
reflecting a 5% premium to its unit price as at 1 May 2000 and a 3.6% premium to NTA.
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At the same time, Goodman Hardie’s parent company, Triden, proposed to acquire the
Manager of Flinders, Australia Asia Investment Management Limited.
General Manager, Property Trusts
right DAVID VAN AANHOLT
Executive Director
left GREGORY GOODMAN
Report
Subsequently, the Stockland Trust Group announced a conditional, hostile scrip offer equivalent to the new facility. The new facility was acquired by GHP and is being developed by Triden.
to $1.25 per Flinders unit based on the closing prices as at 2 June 2000, reflecting a 12.6% It is strategically located in the prime south east Melbourne industrial corridor. On completion,
premium to NTA. Prior to the announcement of Stockland’s hostile offer, Flinders units had Chifley Industry Park will comprise a modern industry park valued at around $80 million.
not traded at that level during this calendar year. Given Goodman Hardie’s “value add” focus,
Reflecting a return after all costs of 9.6%, this successful acquisition is envisaged to be the first
it announced on 9 June 2000 that it was unwilling to pay a substantial premium for Flinders
of many such projects within Chifley Industry Park. GHP has also secured the first right of
and concluded that it was in the best interests of GHP’s Unitholders for it not to revise its offer.
refusal for two years over any proposed development within the Park, allowing significant
Despite this unsuccessful merger, GHP finished the year in the impressive position of the second opportunities for growth consistent with GHP’s investment strategy.
largest listed specialised industrial property trust.
Development Projects
Goodman Hardie will continue to focus on opportunities which are in the best interests of CityWest Office Park, Pyrmont, NSW
Unitholders both in the short and long term. On completion, CityWest Office Park will comprise a $90 million office park incorporating
25,000 m2 of Grade A office accommodation.
ACQUISITION AND DEVELOPMENT PROJECTS
Building A, consisting of 9,715 m2 over five levels, was fully occupied by Network Ten Limited on a
Capitalising on strong economic fundamentals and GHP’s quality portfolio, Goodman Hardie
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15 year lease on practical completion in December 1996. Building B comprises six levels of high
has continued to add value to Unitholders’ returns through successful and value accretive
quality office space totalling 6,856 m2 and practical completion was achieved in November 1999.
acquisitions and developments.
In January 2000, Goodman Hardie announced that commercial lease terms had been agreed
Acquisition over the entire property to One.Tel Limited, Spike Networks Limited and Reckon Limited.
Chifley Industry Park, Moorabbin, Vic
Following the success of Buildings A and B and the regeneration of the Pyrmont precinct,
In April 2000, Goodman Hardie announced that Coca-Cola Amatil (Australia) Pty Limited had
Goodman Hardie called for Triden to commence the development of Building C in January 2000
committed as the first tenant at Chifley Industry Park in Moorabbin, Victoria for a new 10,300 m2
with practical completion scheduled for December 2000. Triden will provide GHP with a rental
warehouse and office facility. Coca-Cola Amatil also has the right to call for the construction of
guarantee for a period of 18 months, ensuring a return of 9.25% from completion.
an additional 6,000 m2 of warehouse space. It will relocate its Victorian PET manufacturing plant
Parramatta Road
LIDCOMBE BUSINESS PARK
A1
A
Commercial
Office
Pyrmont, NSW
CityWest Office Park,
Lidcombe, NSW
Lidcombe Business Park,
Park, Lidcombe, NSW
Master Plan for Lidcombe Business
left to right
Space
A2
Fisher & Paykel
(Stage 1) Office
Warehouse
Units to be
Developed
Bachell Avenue
(Stage 4)
THE RESPONSIBLE ENTITY’S REPORT CONTINUED

Significant interest has been expressed to date by marketing, publishing and technology-
based companies recognising the positional and operational benefits that this area and
Café award winning property provide.

B Office/Warehouse Units
(Stage 5) Lidcombe Business Park, Lidcombe, NSW
Birnie Avenue
On completion, Lidcombe Business Park will comprise a 45,000 m2, high quality
office/warehouse estate with an estimated value of around $65 million. Designed to be
To be Developed completed over five stages, Goodman Hardie’s strategy is to progressively redevelop this
seven hectare site with the final three stages to be developed over the next two years.
Stage 1 of this development comprising 10,950 m2 was occupied by Fisher & Paykel
Australia Pty Limited on completion in September 1999 on a ten year lease. A Master Plan
for the balance of the estate of 34,000 m2 was approved by Auburn Council in September
C Office/Warehouse Units 1999.
(Stage 3)
Stage 2 comprising 9,500 m2 commenced in October 1999 following leasing
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precommitments for approximately 50% of the building to Quality Ingredients Pty Limited
To be Developed
and Candida Envelopes Pty Limited, both on initial lease terms of ten years. During the
construction period, Goodman Hardie announced further leasing success with a six year
Z
lease to Hagemeyer Asia Pacific Electronics Pty Limited for another 25% of the building.
D (Stage 2)
Leased Leased Available Leased
Lane Cove, NSW
TransTech Business Park,
Goodman Hardie continues to actively market the remainder of the estate as a result of the The timing of these leasing transactions and the rentals negotiated were ahead of Goodman
success of Stages 1 and 2. Significant interest has been shown for the proposed Stage 3 being an Hardie’s forecasts and an excellent result for the property and GHP was thus achieved.
8,500 m2 office/warehouse building and Stage 4 being a 5,500 m2 three level commercial office
building. DISPOSALS
One of Goodman Hardie’s strengths is the capacity to identify and dispose of assets which no
TransTech Business Park, Lane Cove, NSW
longer reflect the investment strategy for GHP. The capital proceeds from these disposals are
This $35 million property comprises two components – the existing buildings and the new
refocused to opportunities that offer stronger income and capital growth potential.
office/warehouse development completed in December 1999.
2 The following disposals have occurred during the past financial year:
° Compaq Computer Australia Pty Limited occupies all 11,842 m of the existing buildings on a
new four year lease. PROPERTY DISPOSAL DATE GHP’S ACQUISITION PRICE SALE PRICE
2 91 Ashford Avenue, Milperra, NSW 1 September 1999 $4.0 million $4.5 million
° The new 11,655 m development contains quality office/warehouse units catering for tenants
52 Redfern Street, Wetherill Park, NSW 15 September 1999 $4.5 million $5.9 million
with requirements from 500 m2 to 2,500 m2.
61-67 O’Riordan Street, Alexandria, NSW 25 February 2000 $7.0 million $10.8 million
Market research conducted by Goodman Hardie outlined strong demand for medium sized
GHP appointed Colliers Jardine (Qld) Pty Limited and FPD Savills (Qld) Pty Limited as joint agents
modern office/warehouse facilities in the lower North Shore. This set the focus for the product’s
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to market Sinclair Knight House, Brisbane, Qld through an “expression of interest” which closed
planning and marketing.
in April 2000.
This strategy proved successful with Goodman Hardie announcing in January 2000 that it had
GHP is currently in extended negotiations with an interested party and is endeavouring to
agreed commercial lease terms for 75% of the new complex securing WIV-Australia, Sealcorp
achieve settlement in the first quarter of the current financial year.
Australia Pty Limited, Multitech Australia Pty Limited, A.P. Facilities Pty Limited, Nottage
International Pty Limited and Pall Corporation. A subsequent announcement in June 2000,
reported further leasing success with cap-XX Pty Limited and Computer Hardware of Australia
Pty Limited committing to a further 2,480 m2 at this property.
%
50
45
40
35
30
25

20
LEASING ACTIVITY
Goodman Hardie’s active leasing programme has led to a successful year in retaining
By Net Income as at 30 June
LEASE EXPIRY PROFILE
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existing tenants, as well as attracting new tenants to GHP’s portfolio. Exemplifying the
10 focused and dedicated in-house property management team, GHP agreed commercial
lease terms for approximately 93,000 m2 over the past financial year.
5
The average portfolio occupancy rate for the past year to 30 June 2000 was 98%,
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underpinned by an 82% retention rate of GHP’s tenants during the five years since listing.
2005+
2002
2001
2004
2003
Vacant
This tenant retention represents the significant value add benefits to GHP’s Unitholders of
DIVERSE ASSET ALLOCATION a specialised in-house management team which focuses on and understands specific
Suburban Commercial 9% sectors of the property market.
Business Park 13%
Industrial Estate 16% Building relationships with existing tenants and delivering quality, proactive asset
Warehouse/Distribution 17% management has allowed Goodman Hardie to consistently add value across the entire
Commercial Office 17%
portfolio for Unitholders.
Office Park 28%
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REVALUATIONS
GHP’s portfolio has increased over the past financial year from approximately $561 million
GEOGRAPHICAL DIVERSIFICATION
to $608 million as a result of property revaluations and significant additions to GHP’s
Z
Queensland 3%
properties at CityWest Office Park, Pyrmont, Lidcombe Business Park and TransTech
Victoria 18% Business Park, Lane Cove in NSW.
New South Wales 79%

The following significant leasing transactions have been agreed during the year:
PROPERTY TENANT LEASE TERM AREA
Cambridge Office Park, Unilever Australia Limited Five Years(1) 7,343 m2
Epping, NSW BBC Hardware Limited Three Years(2) 3,433 m2
Ridley Corporation Limited Five Years(1) 1,250 m2
Hurstville Office Park, GIO Australia Limited Six Years(1) 606 m2
Hurstville, NSW Westpac Banking Corporation Three Years(1) 504 m2
CityWest Office Park, Spike Networks Limited Five Years(1) 1,997 m2
Pyrmont, NSW Reckon Limited Five Years(1) 2,969 m2
One.Tel Limited Five Years(1) 1,329 m2
Lidcombe Business Park, Fisher & Paykel Australia Pty Limited Ten Years(1) 10,950 m2
Lidcombe, NSW Quality Ingredients Pty Limited Ten Years(1) 2,165 m2
Candida Envelopes Pty Limited Ten Years(1) 2,170 m2
Pacific View Business Park, Dynsol Laboratory Pty Limited Five Years(1) 1,411 m2
Frenchs Forest, NSW Imaging Innovations Pty Limited Three Years(1) 1,402 m2
Hamlon Pty Limited Three Years(1) 982 m2
TransTech Business Park, Compaq Computer Australia Pty Limited Four Years(1) 11,842 m2
Lane Cove, NSW Sealcorp Australia Pty Limited Five Years(1) 2,623 m2
WIV-Australia Five Years(1) 1,982 m2
cap-XX Pty Limited Three Years(1) 1,826 m2
Prudential Centre, Reed Elsevier Australia Pty Limited Five Years(1) 8,237 m2
Chatswood, NSW Peoplesoft Pty Limited Five Years(1) 3,667 m2 The values adopted by Goodman Hardie’s Directors have been supported by the independent
Sun Building, Sun Microsystems Australia Pty Limited Two Years (3)
4,306 m 2
valuations which resulted in an increase in the NTA to $1.21 per unit as at 30 June 2000.
Gordon, NSW Sun Microsystems Australia Pty Limited Three Years(1) 856 m2
Frontline Systems Australia Pty Limited Two Years(1) 392 m2
(1)
Goodman Hardie’s specialised management team has been able to achieve significant capital
New Lease.
(2)
(3)
Exercise of Option. growth for GHP’s Unitholders represented by an increase of 25 cents per unit to the current NTA
Extension of Lease.
of $1.21 per unit compared to the 96 cents per unit on listing in 1995. Goodman Hardie will
continue its focus on total returns for Unitholders.
Industry Park, Moorabbin, Vic

Artist’s impression of Chifley
Goodman Hardie’s policy is to value the portfolio on a rolling basis with each property being
valued at least every two years or more frequently when significant changes to value may have
occurred.
DEBT PROFILE
Debt as at 30 June 2000 represented 30.1% of GHP’s total assets. With the sale of units acquired
under the offer for Flinders, this figure was reduced to 28.2% on 6 July 2000.
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Further to the refinancing of GHP’s finance facility, Goodman Hardie has sought to minimise
GHP’s exposure to volatility in the debt markets by restructuring its hedging arrangements.
Utilising the intrinsic value of the previous interest rate swaps, Goodman Hardie was able to
negotiate three new hedging arrangements totalling $100 million.
These interest rate swap arrangements, being two $30 million facilities with the National
Australia Bank Limited and one $40 million facility with Australia and New Zealand Banking
GHP’s Top 20 Tenants as at 30 June 2000:
TOTAL NET
PROPERTY
RANK TENANT INCOME [%]
1. Colonial Group 6.04
2. Finemores Pty Limited 5.70
3. Network Ten Limited 5.08
4. Kmart Australia Pty Limited 4.43
5. Brambles Australia Limited 4.37
6. Unilever Australia Limited 3.69
7. Sun Microsystems
Australia Pty Limited 3.39
8. Ausdoc Information
Management Pty Limited 3.11
9. Fuji Xerox
10. Compaq Computer
11. CCH Australia Limited 2.61
GHP
12. Fisher & Paykel
Australia Pty Limited 2.36 ASX LISTED PROPERTY TRUST ACCUMULATION INDEX

13. Nortel Australia Pty Limited 2.23
UBS INDUSTRIAL 300 ACCUMULATION INDEX Group Limited, have staggered maturity dates ranging from March 2003 through to May
Source: UBS Warburg
14. Salmat Group 2.14 2003. Each swap has a three year duration and roll at 90 day intervals. The weighted
15. Sealed Air
Australia Pty Limited 2.03 average interest rate for these swaps is 5.88%.
16. Tyre Marketers 1.7
(Australia) Limited 2.01 GHP has agreed a “knock out” level of 7.0% on all three swaps. If the 90 day bank bill rate is
GHP VERSUS UBS INDUSTRIAL 300 ACCUMULATION INDEX
17. Reed Elsevier above the knock out level on any rollover date, the floating 90 day bank bill rate would be
& ASX LISTED PROPERTY TRUST ACCUMULATION INDEX
Australia Pty Limited 1.79 1.6

18. Sinclair Knight payable for that quarter only. The remaining borrowings of $91.1 million as at 30 June 2000
Merz Pty Limited 1.76
are at floating interest rates.
19. Australia Industry Group 1.71 1.5
20. BBC Hardware Limited 1.56
Goodman Hardie will continue to actively manage its debt strategy to ensure that GHP’s
Total 61.71
1.4 risk profile is minimised.
NEW EQUITY CAPITAL

1.3
In order to fund the ongoing development projects being undertaken by GHP and reduce
its gearing, Goodman Hardie announced in March 2000 its intention to commence the
1.2
10
Distribution Reinvestment Plan (“DRP”) from the quarter ended 31 March 2000.
1.1 The DRP is presently fully underwritten by UBS Warburg Australia Corporate Finance
Limited. Unitholders’ support for the DRP has been strong for the March and June 2000
Z
1.0 quarters. Goodman Hardie intends to monitor its equity capital requirements and gearing
Sep 96
Jan 97
May 97
sep 97
Jan 98
May 98
Sep 98
Jan 99
May 99
Sep 99
Jan 00
May 00
June 00
position in the short to medium term in assessing the ongoing requirement for the DRP.
UNITHOLDERS’ RETURNS ° Maintaining strong tenant relationships.
Over the past year, GHP continued to outperform the industrial subsector as evidenced by the
° Extending the lease expiry profile while securing appropriate lease covenants.
graph opposite which compares GHP’s total return to the industry benchmark, UBS Warburg
° Leveraging off its quality hands-on management to deliver superior capital management.
Industrial 300 Accumulation Index and the ASX Listed Property Trust Accumulation Index.
It is Goodman Hardie’s intention to continue GHP’s expansion through both organic growth and
The underlying strength of the key property markets in which GHP is positioned coupled with
strategic acquisitions but only where such growth and acquisitions enhance Unitholder value.
effective pro-active management, has seen GHP’s NTA appreciate from 96 cents per unit on
listing in 1995 to $1.21 per unit as at 30 June 2000.
This capital appreciation and the distributions paid have provided Unitholders with an average
total annual return of approximately 15% over the past five years.
FUTURE OUTLOOK
GHP’s quality warehouse/distribution centres, industrial estates, office parks and business parks
GREGORY GOODMAN DAVID VAN AANHOLT
provide a substantial base for continued organic growth within the major property markets of Executive Director General Manager, Property Trusts
11
Sydney and Melbourne.
Goodman Hardie will strive to continue GHP’s outperformance in both the short and long
term by:
° Refocusing funds towards higher growth assets.
° Undertaking redevelopments of existing assets.
DISCLAIMER
This Annual Report has been prepared by Goodman Hardie as Responsible Entity for GHP. Aspects of this Annual Report have
been prepared for general information purposes and whilst every care has been taken in relation to its accuracy, no warranty is
given or implied. Further, the information provided is not investment advice and any recipient should consider obtaining their
own independent advice before making any decision which relies on this information.
Directors of the Responsible Entity
Directors MR GREGORY GOODMAN
MR ROBERT MARICH BComm FAICD Executive Director Age 37 (Appointed 17 January 1995)
Non-Executive Chairman Age 52 (Appointed 17 January 1995) Gregory Goodman is an executive director of both Goodman Hardie and
Robert Marich is the non-executive chairman and a member of the Audit Triden. He has 17 years experience in the property industry with significant
Committee of Goodman Hardie. He has over 15 years experience in the expertise in property investment, development, management and funds
financial and investment services industry and a further 22 years experience management. He was the co-founder of GHP playing an integral role in its
in private business. He was previously a director of Bain and Company, management, strategy and growth.
specifically involved in financial planning and funds management, and the
chairman of the Internal Investment Management Committee. He has
significant experience in funds management, trust administration and MR MICHAEL STILL
investment. Executive Director Age 45 (Appointed 21 September 1999)
Michael Still is an executive director of Goodman Hardie and the managing
director of Triden. He has more than 20 years experience in the property and
DR PETER DODD B Comm Dip Ed M Comm MSc PhD
investment banking industries and is a director of various property and
Non-Executive Director Age 50 (Appointed 8 February 1995)
finance related companies. He was managing director of Altair Financial
Peter Dodd is a non-executive director and a member of the Audit Committee
Group prior to joining Triden.
of both Goodman Hardie and Triden. He is a director of ABN Amro and was
previously an executive director of UBS Warburg Australia Corporate Finance
Limited and dean and director of the Australian Graduate School of Senior Management
Management, the business school of both the University of New South Wales DAVID VAN AANHOLT BBus (Land Economy) API
and University of Sydney. He is also the chairman of Delta Electricity and a General Manager, Property Trusts
director of the Centre for Independent Studies. David van Aanholt has over 12 years experience in the property industry
including valuation, sales, leasing, development management, asset
management and funds management. He works closely with the Board on
left to right Mr Robert Marich, Dr David Teplitzky, MR GRAHAM JONES FCPA
Mr Gregory Goodman, Mr Graham Jones, investment proposals, strategic planning and marketing. Previously he was
Non-Executive Director Age 60 (Appointed 21 September 1999)
Dr Peter Dodd and Mr Michael Still employed by Paladin Australia Limited as the asset manager of its industrial
Graham Jones is a non-executive director of Goodman Hardie and the non-
portfolio and prior to that was an associate director of the property advisory
executive chairman of Triden. He is a self-employed management consultant
firm, CDH Properties.
who has previously been a finance director of Capita, Qantas and House of
Fraser (Holdings) UK (including Harrods). He is a director of Save the Children
Fund and the chairman of Australian Caption Centre and the Neuroscience MR MARK ALLEY BCA CPA
Institute for Schizophrenia and Allied Disorders. Finance Director and Company Secretary
Mark Alley’s role as the chief financial officer of Goodman Hardie and Triden
includes managing the finance and corporate services functions. He has over
DR DAVID TEPLITZKY PhD BE (Hons Chem) BSc 20 years experience in finance, property investment and development in
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Non-Executive Director Age 70 (Appointed 21 September 1999) Australia, New Zealand and Europe. Previously he was the group financial
David Teplitzky is a non-executive director of Goodman Hardie and the acting controller of Ipoh Limited and before that the finance director of a private
chairman of Triden. He also is a member of the Audit Committee of Goodman group of property companies.
Hardie and the Remuneration and Audit Committees of Triden. He is the retired
regional vice-president of American Cyanamid Company and the former MS CAROLYN SCOBIE MA BA LLB
managing director of Formica Australia Limited and Lederle Pharmaceuticals Legal Counsel and Compliance Officer
Limited. He is executive chairman of Hydrocool Pty Limited and has been Carolyn Scobie is the Compliance Officer of Goodman Hardie and the in-house
active for many years in other venture capital and high technology companies legal counsel for both Goodman Hardie and Triden. She has over 10 years
in Australia and South-East Asia as a consultant and director. practical legal experience and previously was an in-house legal counsel of
Kumagai Australia.
Investor Relations
INVESTOR RELATIONS
Goodman Hardie aims to provide superior service and communications to Unitholders and the DISTRIBUTIONS
marketplace. This is achieved through its policy of continuous disclosure and the promotion of GHP distributes income quarterly for the periods ending 30 September, 31 December, 31 March
accessibility to Goodman Hardie. and 30 June. Distributions are paid around the 20th day of the month following a period end.
Goodman Hardie’s role as the Responsible Entity for GHP is to act in the best interests of Three options are available in relation to distribution payments. Unitholders may choose to have
Unitholders in providing GHP with diligent and responsible management of its assets and distributions paid by cheque, by direct credit to a nominated Australian financial institution
liabilities. Goodman Hardie is the driving force behind GHP’s investment strategy, marketing and account or reinvested in additional GHP units.
strategic planning. It is responsible for GHP’s asset and funds management, corporate
Direct credit forms are available from our Registrar, Computershare Registry Services Pty Limited
governance, accounting functions, company secretarial duties, financial management and
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(“Computershare”). The benefit of this option is that distributions are credited to a nominated
compliance functions.
account on the payment date providing immediate access to these funds.
Goodman Hardie’s commitment is to produce an Annual Report that is reader-friendly, accurate
Distribution Reinvestment Plan (“DRP”) booklets are also available from Computershare. The
and straightforward. It aims for a full and candid disclosure when reporting on GHP’s
DRP provides Unitholders with the option of reinvesting cash distributions into additional GHP
performance to its Unitholders.
units. Partial or full participation in the DRP may be nominated and this participation will apply
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to all subsequent distributions until altered.
QUESTIONNAIRE TO UNITHOLDERS
A questionnaire was included in last year’s Annual Report with a positive response and Units under the DRP are currently issued by reference to the weighted average unit price of
productive feedback received. Again, Goodman Hardie would like to hear from Unitholders. GHP’s units sold on the stock market of the ASX over a period of the 10 trading days, two days
A questionnaire appears on the last page of this Annual Report. It would be appreciated if a prior to the record date for the relevant distribution, calculated on an ex-distribution basis and
few minutes could be taken to complete and return it in the enclosed business reply envelope. discounted as determined by the Board each quarter. The Board may suspend or terminate the
DRP by giving one month’s written notice. The benefits of the DRP are that the units are issued
at a discount to the market price and no brokerage, commission or stamp duty is paid on the
issue of the units.
INVESTMENT OBJECTIVES AND STRATEGY
Objectives
Goodman Hardie’s objective is to provide
Unitholders with secure property
investments in a diverse range of
warehouse/distribution centres, industrial
and Communications
Manger, Investor Relations
JAYNE GERRIE
Compliance Officer
Legal Counsel and
CAROLYN SCOBIE
Property Analyst
NICK KURTIS
Finance Director
MARK ALLEY
from left to right
estates, business parks and office parks
providing consistent income returns and
optimising long term capital growth.
Strategy
Goodman Hardie’s strategy is to
maximise rentals, lease terms and capital
returns of GHP by:
° Investing in quality properties to satisfy the
requirements of modern corporate and
INVESTOR RELATIONS CONTINUED
ANNUAL TAX STATEMENTS industrial organisations in well established

Goodman Hardie forwards annual tax statements to Unitholders in August which confirm the and located areas.
final details of GHP’s distributions paid during the year ended 30 June including taxable ° Maintaining and actively managing the
components. portfolio.
° Providing greater diversity of locations,

COMMUNICATIONS tenants and lease terms.
Unitholders should advise Computershare in writing if they do not wish to receive an Annual,
° Acquiring properties that enhance the quality
Half Yearly or Quarterly Report by mail. of the portfolio and Unitholders’ returns.
° Disposing of properties when they no longer

HOW TO CONTACT US
meet the objectives for GHP.
Please direct any general questions to Goodman Hardie’s Manager, Investor Relations and
° Adding value to the existing portfolio
Communications, Jayne Gerrie on 1800 024 830. Unit registry questions can be directed to
through timely redevelopment or
Computershare on 1800 000 570. Full contact details for both Goodman Hardie and refurbishment.
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Computershare appear on the back cover of this Annual Report.

° Maintaining and developing relationships
14
with tenants to meet their current and future
CORRESPONDENCE needs.
Changes to unitholdings for issuer sponsored holders should be forwarded to Computershare in
writing. Changes to unitholdings for CHESS holders should be forwarded to the applicable
sponsoring stockbroker.
For ease of processing instructions, when writing to Computershare please include your full
name, address, holder number, your daytime telephone number together with a reference to
Goodman Hardie Industrial Property Trust.
Property Portfolio Summary
(1)
Major Tenants Property Type Area Latest Valuation Cap Rate Occupancy Current book value
Industrial Portfolio
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[m2] [$M] [%] [%] $45.3 million due to
the inclusion of
NEW SOUTH WALES development works as
at 30.06.2000.
697 Gardeners Road, Mascot, NSW Brambles Warehouse/Distribution 29,823 26.30 8.75 100
(2)
28 Britton Street, Smithfield, NSW Tyre Marketers Warehouse/Distribution 12,910 10.50 10.00 100 Building is under
324-326 Woodpark Road, Smithfield, NSW Boral Warehouse/Distribution 8,492 6.20 10.25 100 construction and due
for completion in
Sydney Park Industrial Estate, Alexandria, NSW Mayne Nickless/Ausdoc Industrial Estate 36,838 35.00 9.25 100
October 2000.
Alexandria Industrial Estate, Alexandria, NSW Sealed Air/GMS Fulfilment Industrial Estate 27,022 23.50 10.75 100
(3)
Biloela Street Estate, Villawood, NSW Cadbury Schweppes/Tubemakers Industrial Estate 20,872 15.90 10.75 100 Building under
construction and due
152 Miller Road, Chester Hill, NSW Salmat Industrial Estate 11,853 11.50 10.00 100
for completion in
TransTech Business Park, Lane Cove, NSW Compaq Computer/WIV-Australia Business Park 23,606 35.30 9.00 80 December 2000.
Lidcombe Business Park, Lidcombe, NSW Fisher & Paykel/Quality Ingredients Business Park 24,761 29.85(1) 8.75 100 (4)
GHP’s ownership is
Pacific View Business Park, Frenchs Forest, NSW Device Technologies/Dynsol Laboratory Business Park 8,502 13.00 9.70 100
33.3% (joint owner –
VICTORIA Prudential Nominees
Pty Limited).
Finemores Distribution Centre, Laverton, Vic Finemores Warehouse/Distribution 53,144 32.45 9.00 100
(5)
Kmart Distribution Centre, Braeside, Vic Kmart Warehouse/Distribution 40,043 24.90 9.00 100 GHP’s ownership is
Chifley Industry Park, Moorabbin, Vic(2) Coca-Cola Amatil Industrial Estate 10,303 6.10 9.00 100 50% (joint owner –
Mirvac Property Trust).
Commercial Portfolio
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NEW SOUTH WALES

CityWest Office Park, Building A, Pyrmont, NSW Network Ten Office Park 9,715 31.00 8.25 100
CityWest Office Park, Building B, Pyrmont, NSW Reckon/Spike Networks/One.Tel Office Park 6,856 26.00 8.50 100
CityWest Office Park, Building C, Pyrmont, NSW(3) Office Park 8,606 13.95 – –
Macquarie Corporate Park, North Ryde, NSW CCH Australia/Fuji Xerox/The Boots Company Office Park 14,687 42.30 8.75 100
Cambridge Office Park, Epping, NSW BBC Hardware/Unilever Office Park 12,625 36.50 9.25 100
15
Hurstville Office Park, Hurstville, NSW AMP/NRMA/Qantas Office Park 10,010 24.60 10.25 97
Colonial State Bank Centre, Ashfield, NSW Colonial State Bank Suburban Commercial 13,076 30.00 9.75 100
Sun Building, Gordon, NSW Maxxium Australia/Sun Microsystems Suburban Commercial 7,430 20.30 9.50 100
Prudential Centre, Chatswood, NSW(4) Nortel Australia/Peoplesoft/Reed Elsevier Commercial Office 25,164 43.23 7.50 98
VICTORIA
Royal Domain Centre, Melbourne, Vic(5) Australia Industry Council/Nortel Australia Commercial Office 24,597 40.50 7.00 100
QUEENSLAND
Sinclair Knight House, Brisbane, Qld Kvaerner John Brown/Sinclair Knight Merz Commercial Office 6,656 17.50 8.50 90
Property Location Maps
Brisbane
Airport
v
16 10
13
Blacktown
12
Chatswood
17
PARRAMATTA Ryde 8 Melbourne
Airport EAGLE FARM
v MELBOURNE
Olympic CBD
2 Park PORT BRISBANE
3 JACKSON 4 3 CBD
Smithfield 9 SYDNEY MELBOURNE Moorabbin
CBD (St Kilda Road) Airport 1
11
v
7 LAVERTON 2
6
15 4 1 BRAESIDE
BANKSTOWN INDOOROOPILLY
Bankstown 5
LIVERPOOL Airport 1
v Sydney
Airport
v
14
BOTANY
BAY
Z
Z
GEELONG
N N vGeelong
Airport N
NEW SOUTH WALES

1 697 Gardeners Road, Mascot 2 28 Britton Street, Smithfield 3 324-326 Woodpark Road, Smithfield 4 Sydney Park Industrial Estate, 149-163 Mitchell Road, Alexandria 5 Alexandria Industrial Estate,
1-3 Burrows Road, Alexandria 6 Bileola Street Estate, 76-82 Bileola Street and 33 Shaddock Avenue, Villawood 7 152 Miller Road, Chester Hill 8 TransTech Business Park, 12 Mars Road, Lane Cove 9 Lidcombe Business Park,
16
Cnr Parramatta Road and Birnie Avenue, Lidcombe 10 Pacific View Business Park, 10 Rodborough Road, Frenchs Forest 11 CityWest Office Park, 1-33 Saunders Street, Pyrmont 12 Macquarie Corporate Park, 101 Waterloo Road,
North Ryde 13 Cambridge Office Park, Cnr Oxford, Cambridge and Chester Streets, Epping 14 Hurstville Office Park, Cnr Forest and Gloucester Roads, Hurstville 15 Colonial State Bank Centre, 223-237 Liverpool Road, Ashfield
16 Sun Building, 828 Pacific Highway, Gordon 17 Prudential Centre, 475-501 Victoria Avenue, Chatswood
VICTORIA
1 Finemores Distribution Centre, 33-47 Doherty’s Road, Laverton 2 Kmart Distribution Centre, 90-110 Mills Road, Braeside 3 Chifley Industry Park, Dandenong Road, Moorabbin 4 Royal Domain Centre, 380 St Kilda Road,
Melbourne
QUEENSLAND
1 Sinclair Knight House, Brisbane
CONTENTS
Finemores Distribution Centre
33-47 Doherty’s Road, Laverton, Vic 21
Kmart Distribution Centre
90-110 Mills Road, Braeside, Vic 21
697 Gardeners Road, Mascot, NSW 21
28 Britton Street, Smithfield, NSW 21
324-326 Woodpark Road, Smithfield, NSW 21
Sydney Park industrial Estate
149-163 Mitchell Road, Alexandria, NSW 25
Property Portfolio
Alexandria Industrial Estate
1-3 Burrows Road, Alexandria, NSW 25
Biloela Street Estate
76-82 Biloela Street and
33 Shaddock Avenue, Villawood, NSW 25
152 Miller Road, Chester Hill, NSW 25
Chifley Industry Park
Dandenong Road, Moorabbin, Vic 25
TransTech Business Park
12 Mars Road, Lane Cove, NSW 29
Lidcombe Business Park
Cnr Parramatta Road and Birnie Avenue,
Lidcombe, NSW 29
Pacific View Business Park
10 Rodborough Road, Frenchs Forest, NSW 29
CityWest Office Park
1-33 Saunders Street, Pyrmont, NSW 29
Macquarie Corporate Park
101 Waterloo Road, North Ryde, NSW 29
Cambridge Office Park
Cnr Oxford, Cambridge and Chester Streets,
Epping, NSW 33
Hurstville Office Park
Cnr Forest and Gloucester Roads,
Hurstville, NSW 33
17
Colonial State Bank Centre
223-237 Liverpool Road, Ashfield, NSW 33
Sun Building
828 Pacific Highway, Gordon, NSW 33
Prudential Centre
475-501 Victoria Avenue, Chatswood, NSW 34
Royal Domain Centre
380 St Kilda Road, Melbourne, Vic 34
Sinclair Knight House
369 Ann Street, Brisbane, Qld 34
flexible space
“
Our space is used to house our National Headquarters, marketing and customer development, product development, human
resources and finance departments. After ten years at Cambridge Office Park, the decision to stay for another five years was
fairly easy. Economically it was a sound decision and the site offers a pleasant environment for our staff with extensive
landscaping and recreation areas. We also had the opportunity to take additional space allowing us to consolidate departments
previously located elsewhere. The property enjoys proximity to shops and the Epping train and bus interchange which is a great
PHILLIP COX
Group Commercial Controller
Unilever Australia Limited
”
benefit for our staff, some of whom live on the Central Coast.
19
Finemores Distribution Centre,
33-47 Doherty’s Road, Laverton, Vic
Kmart Distribution Centre,
90–110 Mills Road, Braeside, Vic
697 Gardeners Road,
Mascot, NSW
28 Britton Street, 1
Smithfield, NSW
324–326 Woodpark Road,
Smithfield, NSW
20 5
Warehouse/Distribution
Z
Z
Property
Location
1
Finemores Distribution
Centre, 33-47 Doherty’s Road,
Laverton, Vic
Located in the established
2
Kmart Distribution Centre,
90–110 Mills Road,
Braeside, Vic
Located 23 kilometres south
3
697 Gardeners Road,
Mascot, NSW
Located seven kilometres

4
28 Britton Street,
Smithfield, NSW

5
324–326 Woodpark Road,
Smithfield, NSW

industrial area of Laverton, east of the Melbourne CBD, south of the Sydney CBD in industrial area of Smithfield, industrial area of Smithfield,
15 kilometres west of the in the established industrial the South Sydney industrial 30 kilometres west of the 30 kilometres west of the
Melbourne CBD. area of Braeside. precinct, close to Sydney Sydney CBD and six Sydney CBD and six
Airport and Port Botany kilometres south of the kilometres south of the
container terminals. Parramatta CBD. Parramatta CBD.
Description A substantial quality A modern substantial A large industrial warehouse A substantial modern Two freestanding modern
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distribution centre with a warehouse and distribution extensively refurbished by warehouse building with industrial warehouse
large canopy of 8,353 m2 complex with a large awning previous owner in July 1998 ancillary offices and a large buildings with attached office
ensuring all weather loading. area providing all weather and fully occupied by awning providing all weather accommodation.
access. Brambles. access.
Property Type Warehouse/Distribution Warehouse/Distribution Warehouse/Distribution Warehouse/Distribution Warehouse/Distribution
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Site Area 125,600 m 2

80,010 m 2
42,930 m 2
22,140 m 2
14,750 m2
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Lettable Area TLA 53,144 m 2

TLA 40,043 m 2
TLA 29,823 m 2
TLA 12,910 m 2
TLA 8,492 m2
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Office (5%) 2,657 m2 Office (4%) 1,535 m2 Office (6%) 1,789 m2 Office (3%) 336 m2 Office (11%) 892 m2
Warehouse (95%) 50,487 m2 Warehouse (96%) 38,508 m2 Warehouse (94%) 28,034 m2 Warehouse (97%) 12,574 m2 Warehouse (89%) 7,600 m2
21
Latest Valuation $32,450,000 (30.06.2000) $24,900,000 (30.06.2000) $26,300,000 (30.06.2000) $10,500,000 (30.06.2000) $6,200,000 (30.06.1999)
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Cap Rate 9.00% 9.00% 8.75% 10.00% 10.25%

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Occupancy 100% 100% 100% 100% 100%

Z
Major Tenants Tenant: Finemores Tenant: Kmart Tenant: Brambles Tenant: Tyre Marketers Tenant: Boral
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Expiry: 15.10.2010 Expiry: 03.10.2010 Expiry: 30.06.2010 Expiry: 30.08.2002 Expiry: 14.02.2001
multi-purpose space
“
This multi-purpose space is used to configure our professional workstations, manufacture custom servers and as a distribution
centre for peripherals and a logistics warehouse to support manufacturing. Our decision to re-sign our lease at TransTech
Business Park was based on a number of reasons. The complex provides a pleasant environment with well landscaped
grounds. Its functionality provides excellent access for the volume of trucks coming and going throughout the day and the
TERRY VAN DER HAM

Manager, Logistics
Compaq Computer Pty Limited
”
number of dock doors allow us to divert activities when required. The building also has good security and plenty of natural light.
23
Sydney Park Industrial Estate,
149-163 Mitchell Road, Alexandria, NSW
Alexandria Industrial Estate,
1–3 Burrows Road, Alexandria, NSW
Biloela Street Estate,
33 Shaddock Avenue, Villawood, NSW
1
152 Miller Road,
Chester Hill, NSW
Chifley Industry Park,
Dandenong Road, Moorabbin, Vic
24 5
Industrial Estate
Z
Property
1
Sydney Park Industrial Estate,
149-163 Mitchell Road,
Alexandria, NSW 2
Alexandria Industrial Estate,
1–3 Burrows Road,
Alexandria, NSW 3
Biloela Street Estate,
33 Shaddock Avenue,
Villawood, NSW
4
152 Miller Road,
Chester Hill, NSW
5
Chifley Industry Park,
Dandenong Road,
Moorabbin, Vic(1)
(1)
Leasehold land
with an initial
term of 48 years
from 04.04.2000
and an option for
a further 49 years.
Location Located five kilometres south Located seven kilometres Located in the established Located 26 kilometres south Located approximately
Z
(2)
Book value due to
of the Sydney CBD in the south of the Sydney CBD in industrial area of Villawood, west of Sydney and eight 4.5 kilometres east of Nepean completed works
South Sydney industrial the South Sydney industrial 24 kilometres west of the kilometres south of the Highway, occupying the north as at 30.06.2000.
precinct, close to Sydney precinct, close to Sydney Sydney CBD and eight Parramatta CBD. east corner of Moorabbin (3)
Assumes practical
Airport and Port Botany Airport and Port Botany kilometres south of the Airport. completion on
container terminals. container terminals. Parramatta CBD. 01.11.2000.
Description A substantial industrial estate A large industrial estate with A substantial industrial estate A modern industrial complex A proposed modern
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with four large buildings five separate buildings consisting of four separate consisting of two modern warehouse development with
containing functional containing functional buildings with warehouse freestanding warehouse attached office and adjoining
warehousing and office areas. warehousing and office areas. areas providing high buildings with ancillary canopy area providing all
clearance storage and offices. weather access.
ancillary offices.
Property Type Industrial Estate Industrial Estate Industrial Estate Industrial Estate Industrial Estate
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Site Area 54,240 m2 40,806 m2 35,538 m2 24,200 m2 1.9 ha

Z
Lettable Area TLA 36,838 m 2

TLA 27,022 m 2
TLA 20,590 m 2
TLA 11,853 m 2
TLA 10,303 m2
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25
Office (18%) 6,480 m2 Office (10%) 4,081 m2 Office (8%) 1,662 m2 Office (26%) 3,064 m2 Office (3%) 297 m2
Warehouse (82%) 30,358 m2 Warehouse (90%) 36,725 m2 Warehouse (92%) 18,928 m2 Warehouse (74%) 8,789 m2 Warehouse (97%) 10,006 m2
Latest Valuation $35,000,000 (30.06.2000) $23,500,000 (30.06.2000) $15,900,000 (30.06.2000) $11,500,000 (30.06.2000) $2,104,000 (30.06.2000)(2)
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Cap Rate 9.25% 10.75% 10.75% 10.00% 9.00%

Z
Occupancy 100% 100% 100% 100% 100%

Z
Major Tenants Tenant: Mayne Nickless Tenant: Sealed Air Tenant: Cadbury Schweppes Tenant: Salmat Tenant: Coca-Cola Amatil
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Expiry: 30.06.2004 Expiry: 31.07.2002 Expiry: 30.05.2001 Expiry: 16.04.2006 Expiry: 01.11.2005(3)
Tenant: Ausdoc Tenant: GMS Fulfilment Tenant: Tubemakers
Expiry: 31.01.2009 Expiry: 31.08.2002 Expiry: 31.12.2004
unique space
“
At CityWest Office Park, Pyrmont we have a unique identity in a location that is evolving as Sydney’s new IT hub – we didn’t want
to be just another number in North Sydney or the Sydney CBD. We were also attracted to a new building that didn’t have the
inherent problems of an older property. We use our space for a call centre to support our software and provide product
information, software development, maintenance of our website and sales, marketing and administration. Our staff enjoy the
property’s large landscaped courtyard, café and convenience store. There is also good transportation to the property and it is
very close to the CBD.
PHIL HAYMAN
Operations Director
Reckon Limited (Quicken)
”
27
12 Mars Road, Lane Cove, NSW
Lidcombe Business Park, Cnr Parramatta Road
and Birnie Avenue, Lidcombe, NSW
Pacific View Business Park,
10 Rodborough Road, Frenchs Forest, NSW
CityWest Office Park, 1
1-33 Saunders Street, Pyrmont, NSW
Macquarie Corporate Park,
101 Waterloo Road, North Ryde, NSW
28 5
Business/Office Park
Z
Z
Property
Location
1
12 Mars Road, Lane Cove,
NSW
Located 10 kilometres north

2
Lidcombe Business Park, Cnr
Parramatta Road and Birnie
Avenue, Lidcombe, NSW
Located 16 kilometres west of

3
Pacific View Business Park,
10 Rodborough Road,
Frenchs Forest, NSW

4
CityWest Office Park,
1-33 Saunders Street,
Pyrmont, NSW
Located on the Pyrmont

5
Macquarie Corporate Park,
101 Waterloo Road,
North Ryde, NSW
Located in the heart of the

(1)
The current book
value of this
property is
$45.3 million due
to completed
works as at
of the Sydney CBD in the the Sydney CBD, on a prime of the Sydney CBD, in an Peninsula adjacent to the North Ryde hi-tech area, 14 30.06.2000.
established lower North site fronting Parramatta Road, established industrial area on Anzac Bridge, one kilometre kilometres north west of the (2)
Valuations as at
Shore industrial area of Birnie Avenue and Bachell Sydney’s upper North Shore. west of the Sydney CBD. Sydney CBD. 31.12.1999 of
Lane Cove. Avenue, Lidcombe. Buildings A and B
($31 million and
$26 million
Description Recently completed Major business park currently A high profile business park Office park with two new Modern recently refurbished,
Z
respectively)
office/warehouse complex under construction. First containing six units with commercial office buildings hi-tech industrial building exclude Building
with 12 units as well as two stage of 10,950 m2 completed separate office and of exceptional quality with over three levels arranged C which is under
existing modern office in September 1999 and warehouse components and the third and final stage due around a central atrium with construction with
work in progress
warehouse buildings. second stage of 9,250 m2 parking for 176 vehicles. for completion in December car parking for 546 vehicles. totalling
completed in June 2000. 2000. $13.95 million as
A further three buildings at 30.06.2000.
containing approximately
26,000 m2 proposed.
Property Type Business Park Business Park Business Park Office Park Office Park
Z
29
52,539 m 2
17,270m 2
4,833m 2
17,150 m2
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Lettable Area TLA 23,606 m2 TLA 24,761 m2 TLA 8,502 m2 NLA 16,571 m2 NLA 14,687 m2
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Office (35%) 8,262 m2 Office (15%) 3,714 m2 Office (54%) 4,593 m2
Warehouse (65%) 15,344 m2 Warehouse (85%) 21,047 m2 Warehouse (46%) 3,909 m2
Latest Valuation $35,300,000 (31.12.1999) $29,850,000 (30.06.1999)(1) $13,000,000 (30.06.2000) $57,000,000 (31.12.1999)(2) $42,300,000 (30.06.2000)
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Cap Rate 9.00% 8.75% 9.70% 8.25% and 8.50% 8.75%

Z
Occupancy 80% 100% 100% 100% 100%

Z
Major Tenants Tenant: Compaq Computer Tenant: Fisher & Paykel Tenant: Device Technologies Tenant: Reckon Tenant: CCH
Z
Tenant: WIV-Australia Tenant: Quality Ingredients Tenant: Dynsol Laboratory Tenant: Spike Networks Tenant: Fuji Xerox
Tenant: One.Tel Tenant: The Boots Company
Expiry: 10.11.2004 Expiry: 30.06.2003
Tenant: Network Ten
Expiry: 21.12.2011
“
efficient space
Lidcombe Business Park was the ideal space solution for us. This is a one-stop shop. The warehouse easily caters for the
300,000 appliances passing through it each year, whereas prior to our relocation, we had three warehouses and a much less
efficient operation. The building provides a strong corporate image for our National Marketing and Sales Head Office and
New South Wales State Office. Distribution wise, the location enables us to quickly access all main arterial roads and provides
MIKE CHURCH
General Manager, Marketing and Sales
Fisher & Paykel Australia Pty Limited
”
proximity to many of our major retail customers like Harvey Norman, Retravision,etc.
31
Cambridge Office Park, Cnr Oxford,
Cambridge and Chester Streets, Epping, NSW
Hurstville Office Park, Cnr Forest and
Gloucester Roads, Hurstville, NSW
Colonial State Bank Centre,
223–237 Liverpool Road, Ashfield, NSW
Sun Building, 1
828 Pacific Highway, Gordon, NSW
32
Office Park/
Suburban Commercial
Z
Z
Property
Location
1
Cambridge Office Park,
Cnr Oxford, Cambridge and
Chester Streets, Epping, NSW

2
Hurstville Office Park,
Cnr Forest and Gloucester
Roads, Hurstville, NSW
Located 16 kilometres south

3
Colonial State Bank Centre,
223–237 Liverpool Road,
Ashfield, NSW

4
Sun Building, 828 Pacific
Highway, Gordon, NSW(1)
Located 16 kilometres from

(1)
Leasehold title
with 99 years
from 28.08.1991.
west of the Sydney CBD, in of the Sydney CBD in the suburban commercial area of the Sydney CBD in the
the established suburban established suburban Ashfield approximately nine established suburban
commercial area of Epping. commercial area of Hurstville. kilometres west of the Sydney commercial area of Gordon.
CBD, adjacent to Ashfield
Railway Station.
Description An office park comprising Office park with three A modern six level suburban A well specified five level
Z
three office buildings, a commercial buildings, commercial office building commercial office building
recreation facility and recreation facility and with basement car parking with four levels of basement
basement car parking for undercover parking for 254 for 275 vehicles and a large car parking for 250 vehicles.
349 vehicles. vehicles. despatch/storage area.
Property Type Office Park Office Park Suburban Commercial Suburban Commercial
Z

9,240 m 2
6,380 m 2
4,182 m2
Z
Lettable Area NLA 12,625 m2 NLA 10,010 m2 NLA 13,076 m2 NLA 7,430 m2
Z
33
Latest Valuation $36,500,000 (31.12.1999) $24,600,000 (30.06.2000) $30,000,000 (31.12.1999) $20,300,000 (31.12.1999)
Z
Cap Rate 9.25% 10.25% 9.75% 9.50%

Z
Occupancy 100% 97% 100% 100%

Z
Major Tenants Tenant: BBC Hardware Tenant: AMP Tenant: Colonial State Bank Tenant: Maxxium Australia
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Expiry: 31.03.2003 Expiry: 31.08.2001 Expiry: 31.05.2001 Expiry: 17.09.2001
Tenant: Unilever Australia Tenant: NRMA Tenant: Sun Microsystems
Expiry: 31.01.2005 Expiry: 31.12.2001 and Expiry: 30.06.2003
31.08.2004
Tenant: Qantas
Expiry: 28.02.2006
Prudential Centre,
475–501 Victoria Avenue, Chatswood, NSW
Royal Domain Centre,
380 St Kilda Road, Melbourne, Vic
Sinclair Knight House,
369 Ann Street, Brisbane, Qld
Commercial
2 Office
Z
Z
Property
Location
1
Prudential Centre,
475–501 Victoria Avenue,
Chatswood, NSW(1)
Located in the Chatswood

2
Royal Domain Centre,
380 St Kilda Road,
Melbourne, Vic(2)
Located in the well

3
Sinclair Knight House,
369 Ann Street, Brisbane,
Qld
Located on the north eastern

(1)
(2)
GHP owns
33.3% of this
property.
GHP owns
50% of this
CBD approximately 11 established St Kilda Road part of the Brisbane CBD on property.
kilometres north of the office precinct approximately one of Brisbane’s principal
3 Sydney CBD and 100 metres two kilometres south of the traffic links.
from the Chatswood Railway Melbourne CBD.
Station.
Description A twin tower office complex, High quality, commercial A modern commercial office
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each with 13 levels including office building comprising building with two levels of
a two level plaza, office and eight office levels to the front basement car parking for 67
retail building and three and 12 office levels to the rear vehicles.
levels of basement car of the site and parking for
parking for 438 vehicles. 480 vehicles.
Property Type Commercial Office Commercial Office Commercial Office

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2 2
6,030 m 3,651 m 1,831 m2
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Site Area
NLA 25,164 m2 NLA 24,597 m2 NLA 6,656 m2
Z
Lettable Area
Latest Valuation $43,233,000 (31.12.1999) $40,500,000 (31.12.1999) $17,500,000 (31.12.1999)
Z
34
Cap Rate 7.50% 7.00% 8.50%
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98% 100% 90%

Z
Occupancy
Tenant: Nortel Australia Tenant: Australia Industry Tenant: Kvaerner John
Z
Major Tenants
Expiry: 13.03.2003 Council Brown
Tenant: Peoplesoft Expiry: 24.08.2000 Expiry: 31.12.2002
Expiry: 28.02.2005 Tenant: Nortel Australia Tenant: Sinclair Knight Merz
Tenant: Reed Elsevier Expiry: 31.03.2002 Expiry: 30.09.2003,
Expiry: 28.02.2005 30.09.2005 and
30.09.2008
CONTENTS
Statements of Financial Performance 36
Statements of Financial Position 37
Statements of Cash Flows 38
Notes to the Financial Statements
1. Statement of Significant
Accounting Policies 39
2. Net Profit 41
3. Auditor’s Remuneration 41
Financial Report
4. Distributions 42
5. Earnings Per Unit 43
6. Receivables 43
7. Investment Properties 44
8. Other Assets 46
9. Payables 46
10. Interest Bearing Liabilities 46
11. Contributed Equity 47
12 Reserves 48
13 Undistributed Income 49
14 Commitments 49
15 Notes to the Statements
of Cash Flows 50
16. Related Party Disclosures 51
17. Other Financial Assets 53
18. Acquisition of Controlled Entity 54
19. Investment in Joint Venture 55
20. Additional Financial
Instruments Disclosure 56
21. Segment Reporting 57
22. Subsequent Events 57
35
23. Additional Information 57
Directors’ Declaration 58
Independent Audit Report 59
Statements of Financial Performance
(FORMERLY KNOWN AS THE DISTRIBUTION STATEMENT)
Goodman Hardie Industrial Property Trust Consolidated Parent Entity

FOR THE YEAR ENDED 30 JUNE 2000 1999 2000 1999
Note $000 $000 $000 $000
Total property income 61,125 28,340 22,268 19,400

Direct property expenses (10,838) (6,494) (2,794) (3,068)
Net property income 50,287 21,846 19,474 16,332
Revenue from investments 40,083 – 63,004 5,027

Cost of investments sold (38,050) – (27,250) –
Trust expenses (1,406) (487) (1,357) (488)
Management fees (4,110) (1,644) (4,110) (1,203)
Borrowing costs (11,137) (4,540) (10,804) (4,528)
Net profit 2 35,667 15,175 38,957 15,140
Increase in asset revaluation reserve 12 11,102 16,045 4,776 13,510

Total changes in equity resulting from non owner transactions 46,769 31,220 43,733 28,650
The Statements of Financial Performance are to be read in conjunction with the notes to the financial statements set out on pages 39 to 57.
36
Statements of Financial Position
(FORMERLY KNOWN AS THE BALANCE SHEET)

AS AT 30 JUNE 2000 1999 2000 1999
Note $000 $000 $000 $000
Current assets
Cash 1,230 8,550 1,217 2,347
Receivables 6 20,736 1,004 19,848 5,291
Other 8 2,929 3,204 2,046 1,910
Total current assets 24,895 12,758 23,111 9,548
Non current assets
Receivables 6 – – 36,651 40,792
Investment properties 7 607,687 560,854 242,974 213,505
Other financial assets 17 – – 319,273 285,629
Other 8 1,843 1,152 1,521 745
Total non current assets 609,530 562,006 600,419 540,671
Total assets 634,425 574,764 623,530 550,219
Current liabilities
Payables 9 7,003 12,083 6,106 10,954
Provision for distributions 4 9,682 8,694 9,682 8,249
Total current liabilities 16,685 20,777 15,788 19,203
Non current liabilities

Interest bearing liabilities 10 191,100 161,992 191,100 145,983
Total non current liabilities 191,100 161,992 191,100 145,983
Total liabilities 207,785 182,769 206,888 165,186
Net assets 426,640 391,995 416,642 385,033
Unitholders’ equity
37
Contributed equity 11 391,915 368,371 391,915 368,371
Reserves 12 34,691 23,589 24,693 16,662
Undistributed income 13 34 35 34 –
Total Unitholders’ equity 426,640 391,995 416,642 385,033
The Statements of Financial Position are to be read in conjunction with the notes to the financial statements set out on pages 39 to 57.
Statements of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2000 1999 2000 1999
Note $000 $000 $000 $000
Cash flows from operating activities

Cash receipts in the course of operations 60,466 27,798 22,237 19,259
Cash payments in the course of operations (12,542) (8,873) (1,280) (5,947)
Net cash provided by operating activities 15(a) 47,924 18,925 20,957 13,312
Cash flows from investing activities

Interest received – – – 1,940
Distributions received – – 33,721 3,087
Payments for investment properties and developments (54,749) (59,926) (31,465) (43,655)
Acquisition of Capcount (5,172) (65,490) (5,172) (65,490)
Sale proceeds from investment properties 21,220 – 10,420 –
Loans to controlled entities – – (29,503) (795)
Net cash used in investing activities (38,701) (125,416) (21,999) (104,913)
Cash flows from financing activities

Proceeds from issues of units – 30,659 – 30,659
Issue costs (6,517) (1,624) (6,517) (1,624)
Proceeds from borrowings 161,860 96,892 177,869 80,883
Repayment of borrowings (132,752) – (132,752) –
Interest and other borrowing costs paid (13,115) (4,953) (13,115) (4,920)
Distributions paid (26,019) (14,140) (25,573) (14,140)
Net cash (used in)/provided by financing activities (16,543) 106,834 (88) 90,858
Net (decrease)/increase in cash held (7,320) 343 (1,130) (743)
Cash at beginning of the financial year 8,550 3,090 2,347 3,090

Cash balances in controlled entity acquired – 5,117 – –
38
Cash at end of the financial year 15(b) 1,230 8,550 1,217 2,347
The Statements of Cash Flows are to be read in conjunction with the notes to the financial statements set out on pages 39 to57.
Notes to the Financial Statements
Goodman Hardie Industrial Property Trust
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The significant policies which have been adopted in the preparation of this financial report are:
(a) Basis of preparation
The financial report is a general purpose financial report which has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views,
other pronouncements of The Australian Accounting Standards Board, the Corporations Law and the requirements of GHP’s Constitution dated 17 January 2000. It has
been prepared on the basis of historical costs and, except where stated, does not take into account changing money values or current valuations of non current assets.
These accounting policies have been consistently applied by each entity in the Consolidated Entity and, except where there is a change in accounting policy, are
consistent with those of the previous year. Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial
year amounts and other disclosures.
(b) Principles of consolidation
The consolidated financial statements of the economic entity (“Consolidated Entity” or “GHP”) include the financial statements of GHP (the “Parent Entity”) and its
Controlled Entities. Where an entity either began or ceased to be controlled during the period, the results are included only from the date control commenced or up to
the date control ceased. The balances and effects of transactions between entities in the Consolidated Entity are eliminated on consolidation.
(c) Revenue recognition
Rent
Rent is brought to account when legally due and, if not received at balance date, is reflected in the Statements of Financial Position as a receivable or if paid in
advance, as rental and tenant outgoing advances.
Interest
Interest is brought to account when legally due and, if not received at balance date, is reflected in the Statements of Financial Position as a receivable.
Asset Sales
The gross proceeds of asset sales are included in revenue. The profit or loss on disposal of assets is brought to account at the date conditions attached to the contract
have been satisfied or substantially satisfied.
(d) Taxation
Under current income tax legislation, the Parent Entity and its Controlled Entities are not liable for income tax provided that the taxable income is fully distributed to
39
Unitholders each year.
(e) Investment properties
Investment properties comprise investment interests in land and buildings held for the purpose of letting to produce rental income. Land and buildings (including
integral plant and equipment) comprising investment properties, are regarded as composite assets and are disclosed as such in the financial report.
In accordance with the Corporations Law, investment properties are revalued on a regular basis not exceeding three years. It is Goodman Hardie’s policy to revalue
investment properties at least every two years.
Investment properties are valued by independent registered valuers. The valuation determines the market value based on a willing, but not anxious, buyer and seller;
a reasonable period to sell the property; and that the property is reasonably exposed to the market. Where a property is acquired, the costs of the acquisition are
capitalised and included in the book value of the property.
Notes continued
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Goodman Hardie reviews the valuations of the Consolidated Entity’s property investments at balance date to be satisfied that, in its opinion, the recoverable value of the
investment properties is not less than the book value of the investment properties at that date. In determining recoverable value, the Directors of Goodman Hardie have
taken into consideration that the expected net cash flows have been discounted to their present value using a market determined risk adjusted discount rate.
Revaluation increments are credited directly to an asset revaluation reserve. Revaluation decrements are taken directly to the asset revaluation reserve to the extent that
such decrements are covered by amounts previously credited to that reserve and are still available in that reserve. Revaluation decrements in excess of amounts
available in the reserve are first charged to the Statement of Financial Performance and then an equivalent amount transferred to the asset revaluation reserve.
Subsequent revaluation increments which recover amounts previously charged to the Statement of Financial Performance are, to that extent, credited to the Statement
of Financial Performance and then transferred to the asset revaluation reserve.
The gain or loss on disposal of previously revalued properties is calculated as the difference between the carrying amount of the property at the time of the disposal and
the proceeds on disposal (net of any sale expenses) and is included in the Statements of Financial Performance in the year of disposal. Any related revaluation increment
in the asset revaluation reserve at the time of disposal is transferred to the capital profits reserve.
(f) Depreciation
In accordance with Accounting Standard AASB 1021: Depreciation of Non-Current Assets, investment properties are not depreciated. The properties are subject to
continual maintenance and regularly revalued on the basis described above. Taxation allowances for building, plant and equipment depreciation are claimed by GHP and
are declared as tax free and tax deferred components of distributions.
(g) Investments
Controlled Entities
Investments in Controlled Entities are carried in the Parent Entity’s financial statements at the lower of cost and recoverable amount. Distributions and dividends are
brought to account in the Statement of Financial Performance when they are declared by the Controlled Entities.
Joint Venture
GHP jointly owns a 50% interest in the 380 St Kilda Road Trust. Given the joint venture arrangement, GHP’s interest is brought to account by recognising its share of the
assets, liabilities, rental income and property expenses in the consolidated results of GHP (refer Note 19).
(h) Deferred leasing and tenancy costs
40
Expenditure on direct leasing and tenancy costs is capitalised and amortised off over the lease term in proportion to the rental revenue recognised in each financial year.
(i) Borrowing costs
Expenditure incurred in obtaining debt finance is capitalised and written off over the period of the finance facility. Borrowing costs relating to a qualifying asset are
capitalised as part of the cost of that asset using a weighted average interest rate. All other borrowing costs are expensed as incurred.
( j) Issue costs
Transaction costs arising on the issue of Unitholders’ equity are offset directly against the proceeds from the issue of units.
(k) Rounding
Amounts have been rounded to the nearest one thousand dollars pursuant to ASIC Class Order 98/100.
2000 1999 2000 1999
$000 $000 $000 $000
2. NET PROFIT
Net profit has been arrived at after including:
(a) Other revenue from ordinary activities

Revenue from operating activities
Interest received – Controlled Entities – – – 1,940
Distributions – Other persons 820 – 820 –

– Controlled Entities – – 33,721 3,087
Revenue from outside operating activities

Gross proceeds on sale of investment properties 21,220 – 10,420 –
Gross proceeds on sale of units in Flinders 18,043 – 18,043 –
40,083 – 63,004 5,027
(b) Borrowing costs
Borrowing costs 11,886 4,832 11,426 4,593
Less capitalised borrowing costs (749) (292) (622) (65)
11,137 4,540 10,804 4,528
(c) Amortisation
Amortisation of deferred leasing and tenancy costs 937 98 118 98
$ $ $ $
3. AUDITOR’S REMUNERATION
Amounts received or due and receivable by the Auditor of the Parent Entity for:
41
– Audit services 70,142 46,700 70,142 46,700
– Other services(1) 216,660 139,300 216,660 139,300
286,802 186,000 286,802 186,000
(1)
Other services relate to work performed as Independent Accountant in the Bidder’s Statement relating to the Flinders’ transaction, tax compliance and services provided in registering GHP as a Registered
Investment Scheme and subsequent compliance work.
Notes continued
Goodman Hardie Industrial Property Trust Distribution Total amount Tax deferred(1) Tax free(1) Taxable(1)
Note cpu $000 % % %
4. DISTRIBUTIONS
Distributions proposed or paid by GHP are:
2000 Distributions for the quarter ended
30 September 1999 (Paid 22 October 1999) 2.625 8,662
31 December 1999 (Paid 21 January 2000) 2.625 8,662
31 March 2000 (Paid 20 April 2000)(2) 2.625 8,662
30 June 2000 (Paid 20 July 2000)(2) 2.625 8,862
30 June 2000 (Paid 20 July 2000)(2) (3)
820
13 10.500 35,668 38.6 15.3 46.1
1999 Distributions for the quarter ended
30 September 1998 (Paid 22 October 1998) 2.625 3,229
31 December 1998 (Paid 22 January 1999) 2.625 3,815
31 March 1999 (Paid 22 April 1999) 2.625 3,929
30 June 1999 (Paid 22 July 1999)(4) 2.625 8,249
13 10.500 19,222 18.3 12.1 69.6
(1)
The tax components are determined on the basis of taxation law current at the time of the distribution and included any taxable gains on disposal of investment properties and investments.
(2)
Unitholders were able to participate in the Distribution Reinvestment Plan for the March and June 2000 quarter distributions. GHP entered into an underwriting agreement whereby 100% of the distributions
were converted to units irrespective of whether Unitholders accepted the offer to participate.
(3)
Unitholders of Flinders accepting GHP’s offer to purchase all their units were paid a distribution of 5.6 cents for each Flinders unit previously held for the period ended 30 June 2000, in place of GHP’s
distribution. These new Unitholders of GHP could also participate in GHP’s Distribution Reinvestment Plan.
(4)
Included in the Consolidated Entity’s provision for distribution to Unitholders is an amount of $445,000 representing the distribution due to the Unitholders of Capcount who had not accepted GHP’s takeover
offer at 30 June 1999.
42
Goodman Hardie Industrial Property Trust Consolidated
2000 1999
5. EARNINGS PER UNIT

Distributions per unit (¢) 10.50 10.50
Basic earnings per unit (¢) 10.53 10.22
Weighted average number of ordinary units on issue used in the calculation of basic earnings per unit 338,805,568 148,545,504
Diluted earnings per unit is not materially different to basic earnings per unit.
Consolidated Parent Entity

2000 1999 2000 1999
$000 $000 $000 $000
6. RECEIVABLES
Current
Trade debtors 1,248 618 880 329
Other debtors 625 386 105 312
Proceeds receivable on the sale of investments 18,043 – 18,043 –
Distributions receivable from other persons 820 – 820 –
Distributions receivable from Controlled Entities – – – 4,650
20,736 1,004 19,848 5,291
Non current
Loans to Controlled Entities – – 36,651 40,792
As of 1 July 1999, loans to Controlled Entities are non interest bearing with no specified period of time for repayment.
43
Notes continued
Acquisition Cost including Valuation Valuation 30 June 2000 30 June 1999
Goodman Hardie Industrial Property Trust date additions date book value book value
$000 $000 $000 $000
7. INVESTMENT PROPERTIES
Held by Parent Entity
Lidcombe Business Park, Lidcombe, NSW(1) 26 Sep 97 41,011 29,850 30 Jun 99 45,318 25,472
TransTech Business Park, Lane Cove, NSW 18 Oct 96 30,175 35,300 31 Dec 99 35,677 22,889
Sydney Park Industrial Estate, Alexandria, NSW 15 Dec 89 25,911 35,000 30 Jun 00 35,000 33,000
Finemores Distribution Centre, Laverton, Vic 16 Oct 98 32,378 32,450 30 Jun 00 32,450 32,100
697 Gardeners Road, Mascot, NSW 29 Jun 98 25,600 26,300 30 Jun 00 26,300 25,600
Kmart Distribution Centre, Braeside, Vic 3 Feb 97 21,684 24,900 30 Jun 00 24,900 24,800
Pacific View Business Park, Frenchs Forest, NSW 31 May 96 10,931 13,000 30 Jun 00 13,000 12,000
152 Miller Road, Chester Hill, NSW 17 Apr 96 9,728 11,500 30 Jun 00 11,500 11,000
28 Britton Street, Smithfield, NSW 3 Jul 97 9,574 10,500 30 Jun 00 10,500 10,500
324-326 Woodpark Road, Smithfield, NSW 15 Feb 96 4,731 6,200 30 Jun 99 6,225 6,200
Chifley Industry Park, Moorabbin, Vic(2) (7) 4 Apr 00 2,104 – – 2,104 –
52 Redfern Street, Wetherill Park, NSW(3) Sold – 5,566
91 Ashford Avenue, Milperra, NSW(4) Sold – 4,378
Total Parent Entity 242,974 213,505
Held by Controlled Entities

Prudential Centre, Chatswood, NSW(5) 16 Jun 99 42,738 43,233 31 Dec 99 43,242 42,318
Macquarie Corporate Park, North Ryde, NSW 16 Jun 99 40,829 42,300 30 Jun 00 42,300 40,557
Royal Domain Centre, Melbourne, Vic(5) 16 Jun 99 41,238 40,500 31 Dec 99 40,519 41,043
Cambridge Office Park, Epping, NSW 16 Jun 99 36,069 36,500 31 Dec 99 36,716 35,850
CityWest Office Park, Building A, Pyrmont, NSW 16 Jun 99 30,529 31,000 31 Dec 99 31,000 30,529
CityWest Office Park, Building B, Pyrmont, NSW 16 Jun 99 24,996 26,000 31 Dec 99 26,087 11,781
CityWest Office Park, Building C, Pyrmont, NSW(6) 16 Jun 99 13,949 – – 13,949 8,051
Colonial State Bank Centre, Ashfield, NSW 16 Jun 99 30,110 30,000 31 Dec 99 30,000 30,000
Hurstville Office Park, Hurstville, NSW 16 Jun 99 22,937 24,600 30 Jun 00 24,600 22,700
44
Alexandria Industrial Estate, Alexandria, NSW 28 Jun 95 19,152 23,500 30 Jun 00 23,500 21,500
Sun Building, Gordon, NSW(7) 16 Jun 99 19,300 20,300 31 Dec 99 20,300 19,290
Sinclair Knight House, Brisbane, Qld(8) 16 Jun 99 17,569 17,500 31 Dec 99 16,600 17,511
Biloela Street Estate, Villawood, NSW 28 Jun 95 15,299 15,900 30 Jun 00 15,900 15,819
61-67 O’Riordan Street, Alexandria, NSW(9) Sold – 10,400
Total Controlled Entities 364,713 347,349
Total investment properties 607,687 560,854
7. INVESTMENT PROPERTIES (CONTINUED)

(1)
The book value of Lidcombe Business Park, Lidcombe, NSW includes land, design and construction costs for completed buildings along with the site preparation costs for the next two stages.
(2)
The book value of Chifley Industry Park, Moorabbin, Vic includes the design and construction costs.
(3)
The sale of 52 Redfern Street, Wetherill Park, NSW was settled on 15 September 1999 for $5.920 million.
(4)
The sale of 91 Ashford Avenue, Milperra, NSW was settled on 1 September 1999 for $4.500 million.
(5)
All investment properties are 100% owned with the exception of Prudential Centre, Chatswood, NSW where GHP has a 33.3% interest in the property and Royal Domain Centre, Melbourne, Vic where GHP has a
50% interest in the 380 St Kilda Road Trust, the owner of the property.
(6)
The book value of CityWest Office Park, Building C, Pyrmont, NSW includes the land, design and construction costs.
(7)
All investment properties are held on a freehold basis with the exception of the Sun Building, Gordon, NSW and Chifley Industry Park, Moorabbin, Vic where the land is held on a leasehold basis.
(8)
It is the Directors’ current intention to sell Sinclair Knight House, Brisbane, Qld and accordingly the book value has been revalued down to estimated net recoverable value.
(9)
The sale of 61-67 O’Riordan Street, Alexandria, NSW was settled on 25 February 2000 for $10.800 million.
Independent Valuers
LandMark White
28 Britton Street, Smithfield, NSW; 152 Miller Road, Chester Hill, NSW; Lidcombe Business Park, Lidcombe, NSW; and TransTech Business Park, Lane Cove, NSW were valued by
Messrs A C Zaglas AAPI; R Bowman AAPI; R Bransdon, FAPI; N A Bond, BBus (Prop) AAPI; and L J Brown, Bcom FAPI. An updated valuation of TransTech Business Park, Lane Cove,
NSW was provided by Mr R Bransdon, FAPI.
Colliers Jardine Consultancy and Valuation Pty Limited
Sydney Park Industrial Estate, Alexandria, NSW; 697 Gardeners Road, Mascot, NSW; Prudential Centre, Chatswood, NSW; Macquarie Corporate Park, North Ryde, NSW; Colonial
State Bank Centre, Ashfield, NSW; Hurstville Office Park, Hurstville NSW; and Sun Building, Gordon, NSW were valued by Messrs D McGrath, BBus (Land Econ) AAPI; J Waugh,
AAPI; P A Blakeley, FAPI; J A Wills, AAPI; and M J Payne Assoc AAPI, Dip Bus (Val) AAPI.
Chesterton International (NSW) Pty Limited
Alexandria Industrial Estate, Alexandria, NSW was valued by Mr T Griffiths AAPI.
Knight Frank Valuation Services (NSW) Pty Limited
Pacific View Business Park, Frenchs Forest, NSW; Biloela Street Estate, Villawood, NSW; CityWest Office Park, Building A, Pyrmont, NSW; CityWest Office Park, Building B,
45
Pyrmont, NSW; and Cambridge Office Park, Epping, NSW were valued by Messrs G A Thomson AAPI, A Pannifex, AAPI; WR Retallick, Bec FAPI; and PJ Inglis, AAPI Dip Law (BAB).
Stanton Hillier Parker (NSW) Pty Limited
324-326 Woodpark Road, Smithfield, NSW was valued by Mr J A Barras, MA Funds Management, FAPI.
CB Richard Ellis (V) Pty Limited
Finemores Distribution Centre, Laverton, Vic; Kmart Distribution Centre, Braeside, Vic; and Royal Domain Centre, Melbourne, Vic were valued by Messrs P R Dickinson, AAPI AREI; and
N A Harvey, AAPI.
Burgess Rawson Property Consultants
Sinclair Knight House, Brisbane, Qld was valued by Messrs I Skelsey, AAPI; and P Kelly, FAPI.
Notes continued
2000 1999 2000 1999
$000 $000 $000 $000
8. OTHER ASSETS
Current
Prepayments 1,345 1,431 1,187 1,217
Deferred borrowing costs 589 614 589 570
Deferred leasing and tenancy costs 995 1,159 270 123
2,929 3,204 2,046 1,910
Non current
Deferred borrowing costs 855 533 855 533
Deferred leasing and tenancy costs 988 619 666 212
1,843 1,152 1,521 745
9. PAYABLES
Current
Trade creditors 3,513 1,170 2,586 1,088
Rental and tenant outgoing advances 306 335 520 –
Other creditors and accruals 3,184 987 3,000 275
Accrued Capcount acquisition costs – 9,591 – 9,591
7,003 12,083 6,106 10,954
10. INTEREST BEARING LIABILITIES

Non current
Secured bill and loan facilities 191,100 161,992 191,100 145,983
Financing arrangements
The Consolidated Entity has access to the following loan and bill facilities:
46
Total facilities available 220,000 176,500 220,000 151,500
Facilities utilised at balance date 191,100 161,992 191,100 145,983
Facilities not utilised at balance date 28,900 14,508 28,900 5,517
During the financial year, Goodman Hardie renegotiated GHP’s financing arrangements into a three year syndicated $220 million revolving commercial bill facility with the
National Australia Bank Limited and the Australia and New Zealand Banking Group Limited. Security provided in respect of the facility are first registered mortgages over GHP’s
investment properties and charges over all assets of GHP.
2000 1999 2000 1999
$000 $000 $000 $000
11. CONTRIBUTED EQUITY

351,652,638 (1999: 329,028,075) ordinary units fully paid 406,185 379,574 406,185 379,574
Less issue costs(1) (14,270) (11,203) (14,270) (11,203)
391,915 368,371 391,915 368,371
Movements in ordinary units

Balance at the beginning of the financial year 379,574 123,010 379,574 123,010
Balance of unit premium reserve(2) – 7,100 – 7,100
Issue of fully paid ordinary units(3) 26,611 249,464 26,611 249,464
406,185 379,574 406,185 379,574
(1)
The increase in issue costs relates to:
– units issued as consideration for the acquisition of units in Flinders;
– units issued under the Distribution Reinvestment Plan; and
– units issued as part consideration for the acquisition of units in Capcount.
(2)
The Company Law Review Act 1998 (the “Act”) came into effect on 1 July 1998. The Act abolished par value of units and any amount standing to the credit of the unit premium reserve became part of units on issue on 1 July 1998.
(3)
Issue of fully paid ordinary units were as follows:
– 14,100,396 units were issued at $1.19 per unit as consideration for the acquisition of units in Flinders;
– 7,565,596 units were issued at $1.14 per unit under the Distribution Reinvestment Plan for the 31 March 2000 distribution; and
– 958,571 units were issued at $1.22 per unit as part consideration for the compulsory acquisition of the remaining units in Capcount on 28 September 1999.
47
Notes continued
2000 1999 2000 1999
$000 $000 $000 $000
12. RESERVES
Asset revaluation reserve 31,303 22,980 21,305 17,221
Capital profits reserve 3,388 609 3,388 (559)
34,691 23,589 24,693 16,662
Asset revaluation reserve

Balance at the beginning of the financial year 22,980 10,204 17,221 6,980
Revaluation increment on investment properties 11,102 16,045 4,776 13,510
Revaluation increment on properties sold(1) (2,779) – (692) –
Transfer to undistributed income(2) – (3,269) – (3,269)
Balance at the end of the financial year 31,303 22,980 21,305 17,221
Capital profits reserve

Balance at the beginning of the financial year 609 1,416 (559) 248
Transfer from undistributed income(3) 1,213 – 4,468
Transfer to undistributed income(4) (1,213) (807) (1,213) (807)
Revaluation increment on properties sold(1) 2,779 – 692 –
Balance at the end of the financial year 3,388 609 3,388 (559)
(1)
Asset revaluation reserves which were realised on the sale of 91 Ashford Avenue, Milperra, NSW; 52 Redfern Street, Wetherill Park, NSW; and 61-67 O’Riordan Street, Alexandria, NSW were transferred to the capital
profits reserve.
(2)
Unitholders of Capcount accepting GHP’s offer to acquire the units before 22 June 1999, qualified for GHP’s distribution for the quarter ended 30 June 1999. The distribution received by GHP on
22 July 1999 from Capcount has been treated as a distribution of pre-acquisition profits with the exception of 15 days of income being the period from 16 June 1999, the date the acquisition became
unconditional, to 30 June 1999. As a result of only consolidating 15 days of income for Capcount, a shortfall arose between the income recognised and the distribution paid to the new Unitholders
(ex Unitholders of Capcount) accepting prior to 22 June 1999. This shortfall, totalling $3.269 million, was transferred from GHP’s asset revaluation reserve to undistributed income.
(3)
Profits on the sale of the Flinders units were transferred from undistributed income into capital profits reserve.
(4)
As a result of redevelopments which have required the relocation of GHP’s tenants, an amount partially reflecting rent foregone was transferred to undistributed income from the capital profits reserve,
48
permitted by the provisions of GHP’s Constitution.
2000 1999 2000 1999
Note $000 $000 $000 $000
13. UNDISTRIBUTED INCOME

Undistributed income at the beginning of the financial year 35 6 – 6
Net profit 35,667 15,175 38,957 15,140
Transfer from capital profits reserve 12 1,213 807 1,213 807
Transfer to capital profits reserve (1,213) – (4,468) –
Transfer from asset revaluation reserve 12 – 3,269 – 3,269
Distribution provided for or paid 4 (35,668) (19,222) (35,668) (19,222)
Undistributed income at the end of the financial year 34 35 34 –
14. COMMITMENTS
Capital expenditure
Contracted amounts for improvements, not provided for, payable not later than one year 13,608 22,710 4,326 14,559
Operating lease commitments not provided for in the financial statements

(a) Sun Building, Gordon, NSW is subject to a 99 year ground lease which commenced in August 1991. Rent under this lease is 17.50% of net property income, payable monthly in advance.
(b) Chifley Industry Park, Moorabbin, Vic is subject to a 48 year sub-lease, with a 49 year option to renew, which commenced in April 2000. Under the terms of the sub-lease, rent is 10% of
the freehold value of the land, calculated on each fifth anniversary of the sub-lease. In between these market reviews, rent is reviewed annually subject to consumer price index changes.
During the first four years of the lease, rent is subject to abatements of between 50% and 100%.
49
Notes continued
2000 1999 2000 1999
$000 $000 $000 $000
15. NOTES TO THE STATEMENTS OF CASH FLOWS

(a) Reconciliation of net profit to net cash provided by operating activities
Net profit 35,667 15,175 38,957 15,140
Add non cash items:
– Amortisation of leasing and tenancy costs 937 98 118 98
Add/(less) items classified as investing or financing activities:

– Interest received – – – (1,940)
– Borrowing costs 11,886 4,832 11,426 4,593
– Distributions received (820) – (34,541) (3,087)
Net cash provided by operating activities before changes in assets and liabilities 47,670 20,105 15,960 14,804
Changes in assets and liabilities:

Decrease/(increase) in receivables (1,689) (131) 3,486 (130)
Decrease/(increase) in other assets 131 (3,446) 498 (3,617)
Increase in liabilities 1,812 2,397 1,013 2,255
Net cash provided by operating activities 47,924 18,925 20,957 13,312
(b) Reconciliation of cash

For the purpose of the Statements of Cash Flows, cash includes cash on hand
and at bank and short-term deposits at call. Cash as at the end of the financial year
as shown in the Statements of Cash Flows is reconciled to the related items
in the Statements of Financial Position as follows:
Cash at bank 1,230 2,278 1,217 88

Short-term deposits – 4,272 – 2,259
Bank bills – 2,000 – –
50
1,230 8,550 1,217 2,347
(c) Non cash financing and investing activities
The purchase of Flinders units was funded by issuing 0.952 GHP units in for each Flinders unit. Total units issued were 14,100,396.
On 20 April 2000, 7,565,596 units were allocated under GHP’s Distribution Reinvestment Plan, as payment for the March 2000 quarter distribution.
16. RELATED PARTY DISCLOSURES

(a) The Responsible Entity
Goodman Hardie was licensed as the Responsible Entity on 23 December 1999 and GHP was registered as a Managed Investment Scheme on 17 January 2000. On that day,
Goodman Hardie commenced as Responsible Entity of GHP. This position encompasses those roles undertaken by the former Manager and Trustee. Further, on 17 January 2000
Trust Company of Australia Limited (“TCA”) commenced its role as the Custodian of the directly held assets of GHP.
ASIC has relieved the Responsible Entity from the requirement that properties owned through the sub-trusts be held directly by TCA.
Directors of the Responsible Entity

The names of the persons holding the position as Director of the Responsible Entity, Goodman Hardie, during the financial year are Messrs R Marich, G Goodman, M Still,
G Jones, Dr D Teplitzky, Dr P Dodd and Mr D Hardie (who resigned as a Director on 21 September 1999).
Directors’ Unitholdings in GHP

The relevant interests of each Director of the Responsible Entity in the contributed capital of GHP as at 30 June 2000 are set out below. There were no movements in these
unitholdings during the year.
Numbers of Units Held Numbers of Units Held
2000 1999
Mr G Goodman $1 ordinary units 33,730,660 33,730,660

Mr R Marich $1 ordinary units 10,000 10,000
Dr P Dodd $1 ordinary units 25,000 25,000
Responsible Entity’s Remuneration

In accordance with GHP’s Constitution, the Responsible Entity is entitled to receive a management fee of 0.70% per annum (1999: 0.75% per annum) of the gross asset value of GHP
on the last day of the previous month, payable monthly in arrears. The Responsible Entity is also entitled to a Trustee’s fee.
2000 1999 2000 1999
$ $ $ $
51
During the year the Responsible Entity received the following payments:
– Management fees 4,109,573 1,644,033 4,109,573 1,202,608
– Trustee’s fees 169,836 – 169,836 –
The following amounts were included in payables as owed to the Responsible Entity at balance date 347,219 746,208 347,219 126,208
Notes continued
16. RELATED PARTY DISCLOSURES (CONTINUED)

(b) Other related entities
Goodman Hardie became a wholly owned subsidiary of Triden Corporation Limited on 21 September 1999. Prior to its sale it was controlled by Goodman Holdings Pty Limited.
Triden Corporation Limited and its controlled entities (“Triden Group”) and Goodman Holdings Pty Limited and its controlled entities (“Goodman Holdings Group”) are considered
related parties due to common directors. All dealings between GHP, Triden Group and Goodman Holdings Group are on normal commercial terms and conditions. All material
dealings are reviewed by the Independent Compliance Committee and, where appropriate, appraised by qualified external parties to ensure they are at commercial market rates.
The following transactions have taken place with related entities during the year:
(i) Property services fees, which include property management and leasing services. Amounts paid to Goodman Holdings Group totalled $261,599 (1999: $754,832) and
Triden Group totalled $668,659 (1999: $0).
(ii) Development management and project fees, which include management of developments, acquisitions and disposals of GHP’s investment properties, are based on
the risk associated with the transaction. Amounts paid to Goodman Holdings Group totalled $769,770 (1999: $964,421) and Triden Group totalled $1,564,585
(1999: $0).
(iii) In April 2000, GHP entered into a 48 year sub-lease with Moorabbin Airport Corporation Pty Limited (a director related entity) for the lease of land at Chifley Industry
Park, Moorabbin, Vic. As at 30 June 2000, no amounts had been paid in connection with the sub-lease.
(iv) Amounts owed to related parties which are included in payables as at 30 June 2000 total $1,779,141 (1999: $50,377).
52
Goodman Hardie Industrial Property Trust Parent Entity
2000 1999
$000 $000
17. OTHER FINANCIAL ASSETS

Investment in Controlled Entities 319,273 285,629
Interest Held
2000 1999
% %
Controlled Subtrusts
Goodman Hardie Commercial Property Trust (formerly Capcount) 100 100
BDE Unit Trust 100 100
Biloela Street Unit Trust 100 100
O’Riordan Street Unit Trust 100 100
Waterloo Road Office Trust 100 100
Cambridge Office Park Trust 100 100
Liverpool Road Trust 100 100
Saunders Street Trust 100 100
828 Pacific Highway Trust 100 100
Controlled Entities
Tallina Pty Limited 100 –
Tidecard Pty Limited 100 100
Mintbail Pty Limited 100 100
Tranway Pty Limited 100 100
Oxcap Pty Limited 100 100
Ashcap Pty Limited 100 100
CityCap Pty Limited 100 100
Suncap Pty Limited 100 100
53
Notes continued
18. ACQUISITION OF CONTROLLED ENTITY

On 16 June 1999, the acquisition of Capcount became unconditional as more than 50% of Unitholders of Capcount had accepted. By 30 June 1999, GHP had acquired 99.5% of the
units in Capcount. GHP then proceeded to compulsorily acquire the remaining units in Capcount under terms consistent with the takeover document. Results for Capcount have
been included from 16 June 1999 and compulsory acquisition was completed by September 1999.
Details of the acquisition were as follows:

2000 1999 2000 1999
$000 $000 $000 $000
Cash consideration – 65,490 – 65,490

Issue of units in GHP – 218,817 – 218,817
Consideration payable including acquisition costs – 4,919 – 4,919
Less return of pre-acquisition profits – (3,598) – (3,598)
Total cost of investment – 285,628 – 285,628
Fair value of net assets

Investment properties – 283,359 – –
Cash – 5,117 – –
Receivables – 288 – –
Other assets – 1,676 – –
Payables – (796) – –
Provision for distributions – (4,043) – –
Net assets acquired – 285,628 – –
54
19.INVESTMENT IN JOINT VENTURE

The 380 St Kilda Road Trust, the owner of Royal Domain Centre, Melbourne, Vic, is jointly owned and controlled by GHP. Given the joint venture arrangement, GHP has
consolidated its interest in the financial position and performance of the 380 St Kilda Road Trust into the consolidated results.
For the year ended 30 June 2000, the contribution of the 380 St Kilda Road Trust to the net profit of GHP was $3,334,000 (1999: $249,000). Included in the assets and
liabilities of the Consolidated Entity are the following:
Consolidated
2000 1999
$000 $000
Cash 12 61
Receivables 161 –
Deferred leasing and tenancy costs 60 74
Prepayments 64 53
Total current assets 297 188
Investment properties 40,519 41,043

Deferred leasing and tenancy costs – 44
Total non current assets 40,519 41,087
Total assets 40,816 41,275
Payables (109) (141)

Total current liabilities (109) (141)
Net assets 40,707 41,134
The carrying amount of investments in the 380 St Kilda Road Trust as at 30 June 2000 was $40,707,000 (1999: $41,134,000).
55
Notes continued
20. ADDITIONAL FINANCIAL INSTRUMENTS DISCLOSURE

(a) Interest rate risk
The weighted average effective floating interest rate of interest bearing liabilities at 30 June 2000 was 6.26% (1999: 5.29%). GHP has entered into knock out swap
agreements to fix interest rate exposure up to a knock out level of 7.0%.
The maturity dates of the swap agreements are between March 2003 and May 2003. The agreements are for 90 day intervals and involve quarterly payments of
interest. The weighted average effective fixed rate is 5.88% (1999: 5.47%). In the event that the 90 day bank bill rate is above 7.0% on any rollover date, the 90 day
bank bill rate would be payable for that quarter.
Interest rate risk exposures
GHP’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and financial liabilities is set out below:
Floating Fixed interest Total Weighted

interest maturing average
rate in 1 to 3 years interest rate
Note $000 $000 $000 %
2000
Financial liabilities
Interest bearing liabilities 10 191,100 – 191,100 6.26
Interest rate swap (100,000) 100,000 – 5.88
91,100 100,000 191,000
1999
Financial liabilities
Interest bearing liabilities 10 134,192 27,800 161,992 5.67
Interest rate swap (10,000) 10,000 – 5.47
124,192 37,800 161,992
56
20. ADDITIONAL FINANCIAL INSTRUMENTS DISCLOSURE (CONTINUED)

(b) Credit risk exposures
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.
On balance sheet financial instruments
The credit risk on financial assets of GHP, which have been recognised on the Statements of Financial Position, relate to cash at bank and to a lesser extent receivables.
GHP has a policy of assessing the credit worthiness of all potential tenants and is not materially exposed to any one tenant or industry group. GHP evaluates all tenants’
perceived credit risk and may require the lodgement of rental bonds or bank guarantees, as appropriate, to reduce credit risk. Furthermore, all rents are payable monthly
in advance.
(c) Net fair values of financial assets and liabilities
On balance sheet financial instruments
GHP’s financial assets and liabilities are carried at amounts that approximate net fair value.
Off balance sheet financial instruments
The notional gain/(cost) of hedging instruments is included in the fair value of the swap and will be recongnised as interest expense over the life of the interest rate
swap agreement.
Consolidated
2000 1999
$ $
Net fair value of interest rate swaps 378 (368)
21. SEGMENT REPORTING

The Consolidated Entity’s business is investing in industrial and commercial properties. All activities are located in Australia.
22.SUBSEQUENT EVENTS
On 3 July 2000, $18,043,000 was received in cash for the sale of units in Flinders and was utilised to reduce GHP’s borrowings. As at 6 July 2000, GHP’s borrowings to total assets was 28.2%.
57
On 20 July 2000, 8,415,349 units were issued at $1.15 per unit under GHP’s Distribution Reinvestment Plan.
23.ADDITIONAL INFORMATION
Period of GHP
GHP initially operated as a private unit trust known as Goodman Hardie Unit Trust No 1 under a Trust Deed dated 13 December 1989. On 28 June 1995 units were allotted to the public
pursuant to the prospectus lodged with the ASIC on 15 March 1995 and dated 14 March 1995. GHP became listed on the Australian Stock Exchange on 5 July 1995. The life of GHP is
80 years to 13 December 2069.
On 17 January 2000, GHP was registered as a Managed Investment Scheme with the Trust Deed being replaced with the Constitution.
Directors’ Declaration
In the opinion of the Directors of Goodman Hardie Management Australia Limited, the Responsible Entity for Goodman Hardie Industrial Property Trust:
1. The financial statements and notes, set out on pages 39 to 57, are in accordance with the Corporations Law, including:
(i) giving a true and fair view of the financial position of the Parent Entity and Consolidated Entity as at 30 June 2000 and of their financial performance and cash flows
for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations, including the early adoption of Accounting Standards AASB 1018, AASB 1034 and AASB 1040.
2. There are reasonable grounds to believe that GHP will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Directors of Goodman Hardie Management Australia Limited (ACN 067 796 641).
ROBERT MARICH
Director
GREGORY L GOODMAN
58
Director
Sydney, 3 August 2000
Independent Audit Report
Independent Audit Report to the Unitholders of Goodman Hardie Industrial Property Trust (“GHP”)
Scope
We have audited the financial report of GHP for the year ended 30 June 2000 consisting of the Statements of Financial Performance, Financial Position, Cash Flows and
accompanying notes, and the Directors’ declaration set out on pages 39 to 58. The financial report includes the consolidated financial statements of the Consolidated Entity,
comprising the Parent Entity and the entities it controlled at the year’s end or from the time to time during the financial year. The Directors of the Responsible Entity,
Goodman Hardie Management Australia Limited (the “Responsible Entity”), are responsible for the financial report.
We have conducted an independent audit of the financial report in order to express an opinion on it to the Unitholders.
Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material
misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report and the evaluation of
accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is
presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements and statutory requirements in Australia, so as to present
a view which is consistent with our understanding of GHP’s and the Consolidated Entity’s financial position and performance as represented by the results of their operations
and their cash flows.
The audit opinion expressed in the report has been formed on the above basis.
Audit Opinion
In our opinion, the financial report of GHP for the year ended 30 June 2000 is in accordance with:
(a) the Corporations Law, including:
(i) giving a true and fair view of GHP’s and the Consolidated Entity’s financial position as at 30 June 2000 and of their financial performance and
cash flows for the financial year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations; and
(b) other mandatory professional reporting requirements.
59
KPMG
P M REID
Partner
Sydney, 3 August 2000
Corporate Governance
Goodman Hardie was licensed as GHP’s Responsible Entity on 23 December 1999 and GHP was registered as a Managed Investment Scheme on 17 January 2000. Goodman
Hardie is responsible for the overall corporate governance of GHP, including protection of the Unitholders’ interest and management of GHP. This statement outlines the
main corporate governance practices that were in place throughout the year and subsequent to GHP registering as a Managed Investment Scheme.
Board of Directors of Goodman Hardie
Goodman Hardie’s Board of Directors is responsible for the overall corporate governance of Goodman Hardie. The Board meets on a monthly basis, and will meet more often if
required, to discuss relevant business matters, review the financial performance and consider other issues relating to GHP.
The names of the Directors of Goodman Hardie in office at the date of this statement are set out on page 12.
The composition of the Board is determined using the following principles:
° it should comprise Directors with a broad range of expertise and experience in the property industry;
° it should comprise a minimum of four Directors;
° it should have a strong representation of Executive Directors; and
° the Chairman should be a Non-Executive Director.
The membership of the Board of Goodman Hardie is collectively reviewed as a need arises. The terms and conditions of the appointment and the retirement of Non-Executive
Directors are set out in a letter of appointment. The appointment letter covers remuneration, terms of appointment, Board meeting preparation and attendance, guidance on
conflicts of interest and availability of independent professional advice.
The Chairman reviews the performance of the Directors from time to time and the Directors review the performance of the Chairman at that time also. A Director may resign
at any time or the Board may ask a Director, where the Director’s performance is considered unsatisfactory, to retire. Ultimately it is a majority of the Shareholders of Triden
(the parent entity of Goodman Hardie) which controls the appointment of the Board.
Independent professional advice
Goodman Hardie has the right to seek reasonable independent professional advice at GHP’s expense. Individual Directors of Goodman Hardie are encouraged to fully discuss
matters and make consensus decisions at Board meetings without the need to resort to obtaining individual professional advice. Only expenditure on professional advice
approved by Goodman Hardie is reimbursable from GHP.
Remuneration of Goodman Hardie and other related parties
Goodman Hardie’s remuneration is regulated by GHP’s Constitution.
Goodman Hardie is entitled to receive a fee of 0.70% per annum of the gross Asset Value of GHP on the last day of the previous month, payable monthly in arrears. The
60
Responsible Entity is also entitled to a trustee fee. Please refer to the Note 16(a) to the financial statements for details of the remuneration of Goodman Hardie.
Related party transactions
Details of related party transactions are included in Note 16(b) to the financial statements. Related Party transactions are reviewed by the Independent Compliance
Committee.
It is Goodman Hardie’s practice to have material fees paid to related parties independently reviewed each year. This year that advice was obtained from Jones Lang LaSalle
Advisory (NSW) Pty Limited in relation to property service fees paid to the Triden Group and Goodman Holdings Group.
In addition to the controls imposed and the scrutiny of the Compliance Committee, an independent Non-Executive Director regularly reviews all related party transactions.
The Board has adopted a policy for the buying and selling of units in GHP. Details of Directors’ unitholdings in GHP are included in Note 16(a).
Independent Compliance Committee

The role of the independent Compliance Committee is to monitor and evaluate the effectiveness of Goodman Hardie’s compliance system, as documented in the Compliance
Plan, and to ensure Goodman Hardie and its Board meet their legal, statutory and Constitutional responsibilities to protect Unitholders’ interests.
The members of the independent Compliance Committee and their qualifications since its inception in October 1999 are:
° Mr Michael Braham – A director of Fisher & Paykel Australia Holdings Limited and Accord Pacific Holdings Limited, a member of the National Trust (NSW) Finance
Committee and president of Glaucma Australia Inc. Mr Braham was formerly Regional Commissioner for New South Wales of ASIC.
° Ms Lynn Wood – A director of NSW Lotteries Corporation, Syscorp Pty Ltd and MS Society of NSW, member of the Foreign Investment Review Board and member of
Women’s College Council, University of Sydney.
° Mr David van Aanholt – General manager of Goodman Hardie.
° Ms Carolyn Scobie – Secretary to the Compliance Committee and Goodman Hardie’s Compliance Officer.
The Committee met three times during the year since the registration of the Scheme.
Audit Committee
The role of the Audit Committee is to monitor and evaluate the effectiveness of Goodman Hardie’s internal controls. The Audit Committee also reviews the quality and
reliability of financial information prepared for use by the Board of Goodman Hardie in determining policies or for inclusion in financial reports. The Audit Committee is
responsible for the nomination of external auditors and reviewing the adequacy of existing audits in respect of cost, scope and performance.
The members of the Audit Committee during the year were the Non-Executive Directors of Goodman Hardie and include:
° Dr Peter Dodd – Chairman;

° Mr Robert Marich; and
° Dr David Teplitzky.
The Committee met twice during the year.
Business risk
The Board of Goodman Hardie meets monthly and reviews variances against a previously approved budget and where necessary, recommends corrective action. The Board
also reviews any risks to the assets of the organisation, examines liability management and acts upon any comments from the Auditors. It appoints experienced and well
qualified management to handle the day-to-day administration of GHP. In assessing specific business risks, the Board assesses the economic environment, the property
industry risk and reviews management reports on individual properties, tenants and potential problem areas.
61
Ethical standards
Goodman Hardie supports the concept of independent Non-Executive Directors on its Board and an independent Custodian to safeguard Unitholders’ assets. All of GHP’s
parent entity assets are held by the independent Custodian, Trust Company of Australia Limited.
The Board has a policy of not making investment decisions unless it is presented with well documented support for a proposal and applies a high ethical standard in all its
dealings. All Directors, Managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and
performance of GHP.
Environmental regulation
GHP’s operations are subject to environmental regulation under both Government and State legislation. The Board of Directors reviews environmental issues prior to the
acquisition of investment properties and prior to the commencement of any development or redevelopment. Where necessary, an independent expert’s advice is sought to
review environmental issues affecting GHP. The Board of Directors believes that GHP has adequate systems in place for the management of its environmental requirements
under the various acts and guidelines currently in place, as they relate to industrial and commercial property. Goodman Hardie is not aware of any significant breaches during
the year.
Unitholder Information
Number of % of Total
AS AT 31 JULY 2000 units held issued units
Top Twenty Unitholders

1. Credit Union Services Corporation (Australia) Limited* 58,369,107 16.21
2. Chase Manhattan Nominees Limited* 32,407,617 9.00
3. Goodman Holdings Pty Limited* 28,506,986 7.92
4. AMP Nominees Pty Limited* 22,473,816 6.24
5. Westpac Custodian Nominees Limited* 20,182,595 5.61
6. Perpetual Trustees Nominees Limited 16,554,997 4.60
7. National Nominees Limited 14,400,867 4.00
8. AMP Life Limited 11,268,015 3.13
9. MLC Limited 10,086,750 2.80
10. Commonwealth Custodial Services Limited 9,770,371 2.71
11. Perpetual Trustees Victoria Limited 9,056,680 2.52
12. BT Custodial Services Pty Limited (Sub Cus A/C) 9,029,484 2.51
13. Perpetual Nominees Limited 5,938,591 1.65
14. Zurich Australian Life Insurance Limited 5,473,656 1.52
15. Goodman Equities Pty Limited 5,223,674 1.45
16. Mercantile Mutual Life Insurance Company Limited 4,680,964 1.30
17. Millennial Corporation Pty Limited 4,236,400 1.18
18. MLC Lifetime Company Limited 3,968,424 1.10
19. Transport Accident Commission 3,663,482 1.02
20.Sandhurst Trustees Limited 2,914,575 0.81
Units held by top 20 Unitholders 278,207,051 77.28
Balance of units held 81,860,936 22.72
Total issued units 360,067,987 100.00
* Substantial Unitholders of GHP as at 31 July 2000.
Number of Number of
Unitholders units
62
Unitholder Distribution
1 – 1,000 138 58,402
1,001 – 5,000 971 3,347,779
5,001 – 10,000 1,206 9,647,152
10,001 – 100,000 1,463 32,666,389
100,001 and above 110 314,348,265
Total 3,888 360,067,987
Unitholders with less than a marketable parcel 69 8,612
Voting Rights
Unitholders are entitled to one vote for each fully paid unit held.
Questionnaire
Y We would like to hear from you
This questionnaire is to assist in providing superior customer service to you. Please complete the questionnaire and return it to us in the enclosed business reply envelope.
A summary of the results of the questionnaire will be published in Goodman Hardie Industrial Property Trust’s Half Yearly Report 2000.
Please indicate if you are a:

Direct Unitholder Indirect Unitholder Other (Please Specify)
(Via a Master Trust)
1. How did you find out about Goodman Hardie Industrial Property Trust? 3. Why did you invest in Goodman Hardie Industrial Property Trust?

Stockbroker Financial Industry Magazine Other (Please Specify) Property Portfolio Management Returns Combination Other (Please Specify)
Planner /Press
63
2. How long have you been an investor in Goodman Hardie Industrial Property Trust? 4. Has Goodman Hardie Industrial Property Trust met your expectations?

0 – 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years Yes No
Comment
Questionnaire
5. Do you have investments in any other listed property trusts? 9. Was our strategy clearly articulated for Goodman Hardie Industrial Property Trust?

Yes No Yes No
Comment
6. Please indicate if you are satisfied with our reports and updates during the year?

Not Satisfied Satisfied Extremely Satisfied
10.Was there sufficient information provided on:
Comment
Property Portfolio Property Market Financial Information Corporate Governance

Yes No Yes No Yes No Yes No
ANNUAL REPORT 2000
Comment
7. Was the Annual Report 2000 reader friendly?

Yes No
64
Comment Thank you for completing this questionnaire
This questionnaire was prepared by Goodman Hardie Management Australia Limited (ACN 067 796 641) and accompanies
the Goodman Hardie Industrial Property Trust Annual Report 2000.
8. Did it contain all the information you required?

Yes No
Comment
Glossary of Terms
Term Definition or Explanation
ASIC Australian Securities and Investments Commission.
Asset Revaluation Reserve Undistributed profits that have arisen on the revaluation of the investment properties held in GHP’s portfolio. These profits will only be realised when the properties are sold.
Capcount Capcount Property Trust, now known as Goodman Hardie Commercial Property Trust, is the entity acquired by GHP on 16 June 1999.
Capital Profits Reserve Undistributed profits that have been realised on the sale of investment properties.
Consolidated Entity GHP together with all the entities it controls.
Controlled Entities Companies and trusts owned by GHP as detailed on page 53.
DPU Distribution per unit.
Ex-distribution Where units are traded after this date, they will not qualify for the distribution which is payable for that quarter.
Financial Position GHP’s assts and liabilities at a particular time.
Flinders Flinders Industrial Property Trust.
Gearing The percentage of interest bearing liabilities over total assets.
GHP Goodman Hardie Industrial Property Trust and its Controlled Entities.
GHPN New GHP units issued as part of the offer to purchase units in Flinders.
GHP’s Constitution GHP’s charter which governs the activities of GHP and its Unitholders. GHP’s Constitution dated 17 January 2000 replaced the Trust Deed.
GHP’s Portfolio All properties held by GHP.
Goodman Hardie Goodman Hardie Management Australia Limited.
Managed Investment Scheme A scheme that has the following features:
° people contribute money to acquire units to share in the benefits of the scheme;
° the contributions are pooled to produce financial benefits for Unitholders; and
DESIGNED AND PRODUCED BY ROSS BARR & ASSOCIATES PTY LIMITED
° Unitholders do not have the day to day control over the operation of the scheme.
In the case of GHP, it is a Registered Managed Investment Scheme with the ASIC.
MER Management Expense Ratio. Calculated by adding Trust Expenses and Management Fees and dividing by average Total Assets.
NTA Net tangible assets. Tangible assets less total liabilities.
Parent Entity GHP. An entity which controls other entities.
Related Party In respect of GHP it included the Directors of Goodman Hardie and entities which they have significant influence over.
Tax Sheltered The portion of distributions not treated as assessable income in the Unitholder’s tax return.
The Period 1 July 1999 to 30 June 2000.
The Responsible Entity The company named in ASIC’s record as the entity responsible for the overall management of the scheme in accordance with a trust’s constitution. In the case of GHP,
the Responsible Entity is Goodman Hardie.
Corporate Directory
MANAGED INVESTMENT Legal Counsel and Custodian
SCHEME Compliance Officer Trust Company of Australia Limited
Goodman Hardie Industrial Ms Carolyn Scobie 80-84 New South Head Road
Property Trust Edgecliff NSW 2027
ARSN 091 213 839
Company Secretary and Tel: (02) 9362 3366
Finance Director Fax: (02) 9327 7460
RESPONSIBLE ENTITY Mr Mark Alley
Goodman Hardie Management
Australia Limited Auditor
ACN 067 796 641 Manager, Investor Relations KPMG
and Communications The KPMG Centre
Ms Jayne Gerrie 45 Clarence Street
Directors Sydney NSW 2000
Mr Robert Marich (Chairman) Tel: (02) 9335 7000
Dr Peter Dodd
Unit Registrar Fax: (02) 9299 7077
Computershare Registry Services
Mr Graham Jones Pty Limited
Dr David Teplitzky GPO Box 1903
Mr Gregory Goodman Adelaide SA 5001
Level 11
Mr Michael Still 115 Grenfell Street
Adelaide SA 5000
Registered Address Tel: (08) 8236 2300

Level 10 Toll Free: 1800 000 570
60 Castlereagh Street Fax: (08) 8236 2305
Sydney NSW 2000
Tel: (02) 9230 7401 Stock Exchange Listing

Toll Free: 1800 024 830 GHP is listed on the Australian
Fax: (02) 9230 7444 Stock Exchange and the Home
Exchange is Sydney.
General Manager GHP’s ASX Code is “GHP”.

Mr David van Aanholt

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Goodman Hardie ANNUAL REPORT 2000

700 700 1.25 10.55

500 500 1.15 10.40

GROWTH IN PROPERTY PORTFOLIO

GROWTH IN NTA AND DPU

30 June 1996 to 30 June 2000

Book Value as at 30 June

*GHP listed July 1995

Distribution to Unitholders 35.7 19.2 85.9*

Number of units on issue [M] 351.6 329.0 6.9

Net asset backing per unit [$] 1.21 1.19 1.7

Distribution per ordinary GHP unit [¢] 10.50 10.50 –

Unit price as at 30 June [$] 1.18 1.18 –

Tax-sheltered proportion [%] 53.9 30.4 77.3

Secured borrowings to total assets [%] 30.1 28.2 6.7

Management Expense Ratio (MER) [%] 0.91 0.85 7.1

Number of Unitholders 3,820 3,210 19.0

LIDCOMBE BUSINESS PARK

THE RESPONSIBLE ENTITY’S REPORT CONTINUED

Café award winning property provide.

THE RESPONSIBLE ENTITY’S REPORT CONTINUED

New South Wales 79%

Industry Park, Moorabbin, Vic

THE RESPONSIBLE ENTITY’S REPORT CONTINUED

Australia Pty Limited 1.79 1.6

NEW EQUITY CAPITAL

° Refocusing funds towards higher growth assets.

° Undertaking redevelopments of existing assets.

ANNUAL TAX STATEMENTS industrial organisations in well established

° Providing greater diversity of locations,

° Disposing of properties when they no longer

Computershare appear on the back cover of this Annual Report.

NEW SOUTH WALES

NEW SOUTH WALES

Located seven kilometres

Located in the established

Located in the established

Site Area 125,600 m 2

Lettable Area TLA 53,144 m 2

Cap Rate 9.00% 9.00% 8.75% 10.00% 10.25%

Occupancy 100% 100% 100% 100% 100%

TERRY VAN DER HAM

Site Area 54,240 m2 40,806 m2 35,538 m2 24,200 m2 1.9 ha

Lettable Area TLA 36,838 m 2

Cap Rate 9.25% 10.75% 10.75% 10.00% 9.00%

Occupancy 100% 100% 100% 100% 100%

Located 10 kilometres north

Located 16 kilometres west of

Located 18 kilometres north

Located on the Pyrmont

Located in the heart of the

Cap Rate 9.00% 8.75% 9.70% 8.25% and 8.50% 8.75%

Occupancy 80% 100% 100% 100% 100%

Located 19 kilometres north

Located 16 kilometres south

Located in the established

Located 16 kilometres from

Site Area 13,280 m 2

Cap Rate 9.25% 10.25% 9.75% 9.50%

Occupancy 100% 97% 100% 100%

Located in the Chatswood