Green Light Given to $92 million Highbrook Expansion

April 6, 2011

Media statement
Highbrook Town Centre

Green Light Given to $92 million Highbrook Expansion

Auckland’s Premier Business Park To Develop Town Centre

The commercial future of Auckland has received a massive vote of confidence with the announcement that Highbrook Development Limited is to proceed immediately with stage one of a $92 million investment programme at Highbrook Business Park, a commercial centre in the south of Auckland that could eventually offer employment opportunities to over 10,000 people.

The major shareholder in Highbrook Development is NZX listed Goodman Property Trust, with the remaining shares being owned by ASX listed Goodman Group (25 percent) and interests associated with the Fisher Family (25 percent).

Stage one involves establishing the infrastructure for The Crossing, a town centre precinct, and developing 9,800 square metres (almost a hectare) of retail, office and accommodation space that includes a 62 room serviced apartment complex.

Built over the next 18 months, the initial construction phase has a budgeted cost of $43.5 million.

John Dakin, Chief Executive Officer, Goodman (NZ) Limited, in announcing the development said now was the right time to proceed with the Highbrook town centre, which had always been part of the master plan for the business park.

“The Auckland super city has become a reality, and by late 2012 when occupation of the buildings in the new town centre is starting the economy will be responding positively to the massive investment in infrastructure currently taking place nationally.

“We have already signed an initial agreement for the serviced apartment complex with Quest, which operates over 130 properties on a franchise basis throughout New Zealand, Australia and Fiji.

“We also have signed commitments for significant office and retail developments at The Crossing with Westpac and New Zealand Post.

“These commitments will anchor stage one, and we are in discussions with others to provide services such as restaurants, food bars, medical rooms, fitness facilities and general retail.”

Mr Dakin said that when work commenced at Highbrook in 2004, the vision was to develop a world class business park that integrated a business community in an outstanding natural environment.

“In the space of 7 years, uptake of sites at Highbrook has occurred rapidly with 45 percent of available sites in the estate now developed.

“Highbrook represents a major economic and employment hub to the south of the central business district. It has first class links to the motorway system, the airport, the Waikato and Bay of Plenty, and to the suburban populations of the eastern and southern suburbs.

“It is the type of development that is vital if Auckland is to achieve the vision that led to the amalgamation of the cities and local districts that formerly made up the Auckland Region.

Mr Dakin said future stages of The Crossing would involve developing a further 14,000 square metres of office space and a modest amount of additional retail space. These subsequent stages have a projected cost of $48 million, and a time horizon of 5 to 7 years.

“Within the completed town centre we envisage having six distinct buildings including a 9-level landmark tower and two low rise commercial buildings.

“Large commercial buildings with high occupancy rates are essential to support the planned retail operations.”

Mr Dakin said Goodman Property Trust’s investment contribution to stage one was $22 million, and funding for that was already to hand.

When finished, Highbrook Business Park is expected to have a value in excess of $1.0 billion.

ENDS

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