Anne Gibson

Anne Gibson is the Property editor of the NZ Herald

Property sector welcomes Fonterra's search for state of the art HQ

Graham Darlow, chief executive of Fletcher Building's construction division, says when a significant project like this goes ahead, the benefits to the sector are considerable. Photo / Greg Bowker
Graham Darlow, chief executive of Fletcher Building's construction division, says when a significant project like this goes ahead, the benefits to the sector are considerable. Photo / Greg Bowker

The property sector has welcomed Fonterra's request for a new state-of-the-art campus-style world headquarters in Auckland by May 2016.

Graham Darlow, chief executive of Fletcher Building's construction division, said the the project is needed.

"A significant project like this would be a welcome boost for the Auckland CBD construction market, which has been relatively subdued over the past few years," Darlow said.

"When projects like Fonterra's proposal come about, especially in the current climate, it does lift the level of confidence in the commercial construction sector. When a project like this goes ahead, the benefits to the sector are considerable."

Fonterra issued a 21-page request for information document, saying it needed 11,000-13,000sq m net lettable office space, a further 200 carparks on site and another 300 nearby, sited near hotels, child care, green spaces and public transport, in or on the edge of Auckland's CBD.

That deal could be worth $100 million, said Zoltan Moricz of CBRE, but other experts put it closer to $40 million, saying it is not in the same league as Telecom's $280 million headquarters.

Marcus Beveridge, a lawyer of Queen City Law who specialises in the construction, immigration and real estate, said a number of new Auckland developments were proposed, including SkyCity's $350 million international convention and exhibition centre and proposals for a number of new apartment towers.

"Our hitherto depressed Auckland construction sector may finally see some light," Beveridge said.

Ashley Church, Newmarket Business Association chief executive, wants Fonterra to consider that suburb as the base for its new office.

"Fonterra is clearly an employer which values its staff and wants to be part of an environment which ensures their retention. Newmarket can do that," Church said. "We provide a superior mix of retail outlets, commercial services and public amenities in a central city location and we're the primary hub of public transport in Auckland. In every sense, we're a perfect fit with Fonterra's aspirations."

- NZ Herald

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on red akl_n6 at 31 Aug 2014 18:27:56 Processing Time: 527ms