Archive | Highbrook

5 new Highbrook developments include more Quest units & parking building

Goodman Property Trust’s manager announced 5 new developments for the Highbrook Business Park yesterday, worth a total $44 million.

Goodman (NZ) Ltd chief executive John Dakin said they were expected to generate around $3.7 million/year in rent, an 8.4% return on investment.

The 5 new Highbrook projects, their size, cost & expected completion date:

Quest serviced apartment expansion: 60 new apartments, $11.7 million, July 2018
The Crossing office building 6: 3006m², $4.9 million, June 2018
Multi-storey carpark building: 324 new parking spaces, $5.7 million December 2017
Warehouse on Pukekiwiriki Place: 2929m², $13.9 million, November 2017
Showroom & warehouse units on Highbrook Drive: 1730m², $7.9 million, December 2017.

Mr Dakin said: “Completing the development programme at Highbrook is a key priority, and these new projects are timed to take advantage of the positive customer demand & strong market conditions that currently exist.”

Highbrook’s current value exceeds $1 billion, making it Goodman’s largest investment asset. The 110ha estate is about 70% of the way through its planned development and contains over 40 buildings, providing over 380,000m² of warehouse & office space.

The Crossing – the commercial heart – provides accommodation, business support services, food & hospitality options and other amenity & recreational opportunities.

Mr Dakin said: “High occupancy levels at the Quest and a shortage of visitor accommodation in Auckland are the catalysts for a substantial new expansion project that will double the number of serviced apartments at The Crossing. Following the success of the recently completed Building 5, we are also commencing another new office facility and developing an adjoining multi-storey carpark.”

The trust’s industrial portfolio has a 100% occupancy rate, and the 2 new warehouse developments are aimed at continuing Goodman’s highly successful build-to-lease programme: “With most projects leasing well before completion, it’s been an effective strategy that is growing cash earnings and improving an already high quality property portfolio,” Mr Dakin said.

Attribution: Company release.

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Goodman signs Highbrook & Glassworks developments

Goodman Property Trust has secured commitments for 2 new industrial projects costing $30.6 million at its Highbrook business park in Auckland and Glassworks industry park in Christchurch.

The new facilities on a total 3ha will add 16,000m² of lettable area to the trust’s portfolio and generate over $2.1 million/year in rent.

Management company Goodman (NZ) Ltd’s chief executive, John Dakin, said on Friday specialist stationery supplier ACCO Brands Corp (ex-Pelikan Artline Ltd) had doubled its space requirement at Highbrook and committed to an 8-year lease over a purpose-built 6400m² warehouse. It’s scheduled for completion in September 2017.

At Glassworks, Goodman will develop a 9600m² facility for NZX-listed Steel & Tube Holdings Ltd (image above is the entrance to its Highbrook premises), scheduled for completion in December 2017. It’s Goodman’s fourth development for Steel & Tube since 2009, and makes the steel supplier one of the trust’s top 5 customers.

The combined total cost of $30.6 million (including land, construction costs and all management & other professional fees) reflects a yield on cost of 6.9%.

Highbrook leasing progress

Mr Dakin said strong customer demand was ensuring good leasing progress on other developments nearing completion: “With occupancy at Highbrook around 99%, we’re undertaking a mix of committed & uncommitted developments to meet demand. It continues to be a successful strategy, with just one level of office space remaining for lease at the new commercial building under construction at The Crossing. We also expect to have leased The Point, an uncommitted 2820m² industrial development on Business Parade North, before it completes in April 2017.”

Attribution: Company release.

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Goodman starts 3 new spec projects

The Goodman Property Trust has started 3 new industrial developments with a total project cost of $32.38 million. They’re spec developments in that no tenant has yet been signed up, but that’s against an occupancy rate over 99%.

Management company Goodman (NZ) Ltd’s chief executive, John Dakin, said yesterday it was developing the 3 projects on an uncommitted basis. They’re expected to generate about $2.2 million/year of rent once fully leased & income-producing.

“Historically low vacancy levels are supporting a heightened level of development activity across all our Auckland estates. With the trust’s industrial portfolio recording an occupancy rate of over 99%, these 3 projects complement the existing development programme, ensuring the trust has the capacity to meet new demand.”

The new warehouse developments are:

  • The Hill, a 7500m² facility at the end of Pukekiwiriki Place in the Highbrook Business Park, East Tamaki
  • The Point, a 2820m² facility at the end of Waiouru Rd, Highbrook
  • The Gate, a 4930m² facility on Church St, beside the Recall facility at The Gate Industry Park in Penrose.

“Commencing a small number of new projects without a customer commitment has been a successful strategy for the trust, with the previous 2 developments at Highbrook Business Park leased to GWA & Synnex well ahead of completion. These facilities, which are similarly sized to these projects, are expected to record valuation gains of around 20% at 31 March 2016.

“More than 70% of new developments announced by the trust over the last 12 months have been design-built projects undertaken on a precommitted basis. These 3 new facilities provide customers seeking high quality business premises with another leasing option. They are of a size & design that is likely to appeal to a wide range of occupiers and we expect them to lease quickly.”

Attribution: Company release.

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Goodman secures 8th new Highbrook development in 18 months

Goodman Property Trust will build a $26.8 million coolstore at the Highbrook Business Park for an unnamed existing tenant.

Management company Goodman (NZ) Ltd’s chief executive, John Dakin, said on Wednesday the tenant had committed to a 15-year lease on the new 7458m² coolstore on a 3.9ha site at the southern corner of the estate.

The new development features office space, refrigerated warehousing & extensive yard areas. It also includes expansion rights to accommodate growth.

Mr Dakin said: “A positive operating environment is facilitating our customers’ business growth and we’re extremely pleased to be developing a new, larger coolstore for an existing refrigerated logistics customer at Highbrook.”

Goodman has unveiled 8 new projects totalling $108.6 million at Highbrook over the last 18 months, mostly design-build commitments from existing customers requiring additional space. They will add 50,000m² of rentable area to the portfolio and are expected to generate $8.6 million/year in rent, providing a yield on cost of about 7.9%.

Attribution: Company release.

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Metroglass opens new facility

Metro Performance Glass Ltd opened its new $21.5 million Auckland manufacturing plant yesterday, designed to meet North Island housing & construction demand at internationally competitive prices.

Chairman Sir John Goulter said: “New Zealand housing markets, particularly those in Christchurch & Auckland, are experiencing a boom due to a shortage of houses and construction industry bottlenecks that make it difficult to respond to the high levels of demand.

“High quality building products, delivered at internationally competitive prices, such as those produced at Metroglass’ new facility, represent an important step to relieve these pressures.”
Metroglass consolidated production from 5 Auckland sites onto one 26,000m² site at 5 Lady Fisher Place, Highbrook, in January.

Link: Metroglass

Attribution: Company release.

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Propbd on Q T3Mar15 – hearing panels, QV index up, 3 for Highbrook, SkyCity extension

Commissioners on shared path, 3 Kings quarry, London St demolition
QV’s Auckland index up 5% in 3 months
Goodman to add 3 buildings to Highbrook Business Park
Convention centre design approval extended

Commissioners on shared path, 3 Kings quarry, London St demolition

Auckland Council’s hearings committee appointed 3 sets of commissioners today after resolving on one appointment, where a potential conflict of interest was raised, that the commissioner should resolve any conflict himself. The appointments:

Cllr Chris Darby raised a possible conflict of interest in the London St appointment, telling the committee “Mr Hill is or was the chair of the St Marys Bay Association and lives just along the street.”

When council resolutions team manager Rob Andrews said it might therefore be better to go straight to the alternate, Independent Maori Statutory Board member David Taipari argued that the committee had decided on an earlier application that it should leave commissioners to manage conflicts of interest themselves, so the original appointment stood.

Mr Hill is an architect who runs his own practice from his home in Hackett St, which is a continuation of London St, on the other side of St Marys Rd. He’s a former chairman of the St Mary’s Bay Association.

QV’s Auckland index up 5% in 3 months

The latest monthly QV residential price movement index shows values in Auckland rose 13% in the year to February, 5% over the last 3 months, 43.8% since the previous market peak of late 2007. Adjusted for inflation, the annual increase fell to 12.2% and the rise since 2007 to 23%.

Nationally, values rose 6.4% over the year, 3.1% over the last 3 months, taking the index 20.3% above the 2007 peak. Adjusted for inflation, the annual increase fell to 5.6% and the rise since 2007 to 2.9%.

Goodman to add 3 buildings to Highbrook Business Park

Goodman Property Trust said today it would spend $28 million developing 2 new industrial facilities & an office building at the Highbrook Business Park.

They will add 11,140m² to the trust’s investment portfolio and are expected to generated $2.2 million/year rent once fully leased & income producing, providing an initial yield of 7.9%.

Convention centre design approval extended

SkyCity Entertainment Group Ltd said yesterday it had formally agreed with the Government to extend the last date for approval of preliminary design of its international convention centre to 30 April.

Attribution: Council committee meeting, QV, company releases.

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Goodman adds 3 new industrial buildings

Goodman Property Trust said on Friday it was undertaking 3 new development projects to meet rising customer demand.

One, at the Central Park Corporate Centre, Ellerslie, has been completed and another is 80% leased. In association with them, Goodman is refurbishing the childcare & gym facilities and adding a carpark building.

Mainfreight Ltd has leased the last available built space at the Highbrook Business Park and Goodman is undertaking another uncommitted development of similar size.

At Westney Industry Park in Mangere, DSL Logistics Ltd has committed to a 3000m² extension to its warehouse.

Chief executive John Dakin said: “Ongoing leasing success & high levels of customer inquiry continue to drive our development programme. To meet this demand and facilitate future growth, we are commencing new industrial & infrastructure projects.

“The developments, which have a total project cost of $33.4 million, are expected to add $2.8 million of annual income to the trust’s portfolio.”

The 2 new office buildings at Central Park will add 11,200m² of office accommodation to the $170 million office park. In the latest office development there, insurance company YOUI has committed to a new 9-year lease over 4600m². Youi Pty Ltd, which has entered the New Zealand market in the last year, is a subsidiary of South African group Rand Merchant Insurance Holdings Ltd. The 5-level campus-style facility is now 80% leased, 4 months ahead of its scheduled completion in January 2015.

The other new Central Park building, 5350m² completed in 2013, has long-term commitments from Genesis Energy Ltd & Restaurant Brands Ltd and was fully leased well ahead of scheduled completion.

Mr Dakin said: “The positive leasing outcomes & ongoing development activity at Central Park are the catalyst of new infrastructure projects that include the refurbishment of the childcare & gym facilities, together with the development of a new multi-level carpark building providing 600 more covered spaces.

“Customer demand is strong across the portfolio, and the new lease to Mainfreight at Highbrook means this substantial estate is now fully occupied. To facilitate the demand for industrial facilities in this location we are undertaking another uncommitted development of a similar size.

“The new 5400m² warehouse is of a scale & design that is expected to appeal to a range of companies seeking high quality space in one of Auckland best business locations.”

At Westney, DSL Logistics has signed a new 8-year lease over its expanded 7750m² premises, complemented by a 5-year lease over an adjoining facility.

“With the earlier design-build commitments from Steel & Tube and Ford, we have increased the volume of development activity announced in the last 6 months to around $80 million. Based on current demand, we expect to commence over $100 million of new projects this financial year.”

Mr Dakin said a buoyant investment market, with both local & offshore investors competing for stock, meant asset sales had become the trust’s preferred source of development funding: “A growth strategy focused on asset recycling is enhancing the portfolio and contributing to strong investment gains for the trust. The sale of the Carter Holt Harvey packaging facility means over $45 million of disposals have been achieved already this year. It is a successful programme that is helping fund an increasing level of development activity driven by a sustained lift in customer demand.

“Further disposals are planned and other properties are being actively marketed for sale as part of the trust’s asset recycling programme.”

Attribution: Company release.

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Metroglass deal makes sixth Highbrook project this year

Metropolitan Glass & Glazing Ltd has committed to a new 16,500m² warehouse, office & showroom on a 25,465m² corner site at the northern edge of the Highbrook Business Park, subject to obtaining consents.

Metroglass is a major manufacturer & supplier of flat glass products & glazing services to the building & retail sectors. John Dakin, chief executive of Highbrook owner Goodman Property Trust’s manager, Goodman (NZ) Ltd, said on Wednesday the new facility would consolidate Metroglass’s Auckland manufacturing & distribution in one central location. It’s also secured expansion rights over adjoining land.

Mr Dakin said the project was scheduled for completion in September 2014 at an estimated $25.2 million total cost. The 15-year lease was set at market rental levels and includes fixed annual increases.

“The facility for Metroglass is the sixth new project we have announced at Highbrook this year, building on the momentum created with the earlier commitments from Big Chill, Contract Logistics, Trio, Viridian and the expansion & reconfiguration of the Just Group facility.

“These projects will provide almost 34,000m² of high quality business space to the portfolio and contribute more than $4.4 million of annual rental, on a blended yield of 8.1%, once complete.”

Greg Goldfinch & Brad Johnston of Colliers International negotiated the deal.

Attribution: Company release.

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Highbrook Crossing officially opened

The Crossing at the Highbrook business park.

The Crossing at the Highbrook business park.

The Goodman Property Trust officially opened its $35 million 10,000m² commercial, retail & hospitality precinct The Crossing, at the 100ha Highbrook business park on Friday.

It features campus-style buildings arranged around a podium base, supporting an open plaza. It has a 62-room Quest hotel, professional service firms’ offices, convenience retail, food & hospitality, and a Jett’s gym will open soon.

Management company Goodman (NZ) Ltd’s chief executive, John Dakin, said: “The Crossing is a key component of the Highbrook masterplan. Designed to provide amenity & support services to our business park customers, the development has been a great success.”

The business park was owned by a joint venture that included interests associated with the estate of the late Sir Woolf Fisher, Goodman Property Trust and the ASX-listed Goodman Group. The trust took full ownership of the property late last year.

Attribution: Company release.

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Goodman starts 4 Highbrook developments, 3 of them expansions

Goodman Property Trust has started 4 new development projects at Highbrook Business Park at East Tamaki.

The NZX-listed trust bought out its 2 Highbrook partners, the ASX-listed Goodman Group and Fisher (interests associated with the estate of the late Sir Woolf Fisher, headed by Sir Noel Robinson), last summer.

The chief executive of management company Goodman (NZ) Ltd, John Dakin, said yesterday the 4 projects had a combined total project cost of $23.7 million (including land, construction costs & all professional fees) and would add 13,915m² of industrial space to the trust’s investment portfolio.

With a blended yield of 8.4%, the facilities are expected to generate about $2 million/year of rent once completed & fully income-producing.

“It is encouraging to see a strong lift in customer inquiry and we’re accelerating our development programme to meet demand for new facilities across all our estates. Existing customers are also seeking expansion options as their businesses grow. These new projects at Highbrook reflect our strong customer relationships and reinforce the park’s reputation as one of Auckland’s premier business locations.”

The largest of the new projects is a 7793m² expansion for existing tenant Viridian Glass Ltd, which will take a new 15-year lease extending its term to 2030. Viridian will pay ground rent on the 16,596m² site until the new warehouse & office are completed in December 2015. The enlarged facility will have extensive yard & hardstand areas.

2 other expansion projects, containing a total 4660m² of warehouse & office, are under way for Contract Logistics Ltd & Big Chill Distribution Ltd, which already occupy more than 10,000m² at Highbrook and hold expansion rights over adjoining land.

Mr Dakin said both tenants were extending their leases as part of the expansion agreements, with the expiry for Contract Logistics now June 2020 and Big Chill extending to February 2029. Total project cost is $7.1 million. Contract Logistics’ new space is scheduled for completion in June 2014 and Big Chill’s in February 2014.

Goodman is also reconfiguring the 6429m² warehouse & office facility on Sir Woolf Fisher Drive occupied by The Just Group. The building is being extended to 7891m² and configured as a multi-unit facility with a moveable inter-tenancy wall to provide increased leasing flexibility.

With 2 separate road access points, the expansion allows better utilisation of the existing site and provides The Just Group with 5145m² of space tailored to its current requirements. The new adjoining unit will offer 2746m² of predominantly warehouse area, which Mr Dakin expected to lease quickly due to the limited vacancy & strong demand at Highbrook.

Attribution: Company release.

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