Start on $91.7m next stage of Highbrook Business Park

Wednesday 6th April 2011

The joint venture in which NZX-listed Goodman Property Trust has a 50 percent interest is starting to build the estimated $91.7 million next stage of Highbrook Business Park in Manukau.

Trust manager Goodman (NZ) today said the next stage, The Crossing project, was a 24,700sq m mixed use development, with 62 serviced apartments, 17,300sq m of commercial office space and 4400sq m for retail and hospitality-type uses.

With six buildings arranged around a podium base and linked by an open air plaza, it was designed as the focal point of the 108ha Highbrook business park.

The first stage of The Crossing, with a forecast total cost of $35.1 million, would be built in the next 18 months.

It had started with commitments for a Quest-branded serviced apartment complex and retail outlets for New Zealand Post and Westpac (NZ) Investments. More pre-commitments from other retail customers were being finalised, Goodman said.

A further $8.4 million of works attributable to subsequent stages would be incorporated into the initial construction phase. The rest of the development was likely to take five to seven years.

The Crossing was forecast to provide a yield on cost of 8.45% once fully leased and income producing.

With a likely end value of more than $1 billion, Highbrook is more than 45% completed, with customers providing almost $35 million of annual rental income to the joint venture owners Highbrook Development.

NZPA

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