Multiplex focuses on Auckland

Multiplex Constructions (NZ) has turned its focus solely towards Auckland and is hunting for fewer - but bigger - projects.

Managing director Dan Ashby said he had rejected moving the builder out of Auckland just for the sake of diversifying and he was tendering for larger projects because they were more profitable.

"They add more value," Ashby said.

Although Multiplex had worked in other cities, it was now only building in Auckland where it has almost finished the city's tallest new apartment block and has just started the North Shore's tallest building.

With a $287 million order book, Ashby said the Australian-headquartered builder has enough projects to take it through to the end of next year.

The country's largest builder, Fletcher Construction, has a $1.2 billion order book.

Hawkins Construction has contracts worth $360 million this year. Its largest projects are the $170 million men's prison in Otago, the $110 million women's prison in Manukau, the $50 million extensions to Auckland Museum and the $38 million terminal upgrade at Auckland Airport.

Multiplex's largest job is at Sylvia Park where, on January 11, Ashby announced he had scored the contract to complete the final stages of the shopping centre.

Multiplex has been at the 24ha Sylvia Park since October 2004 and Ashby said by the end of next year his firm would have finished contracts worth $220 million for developer Kiwi Income Property Trust.

These included a $35 million enabling and infrastructure works job and an $82 million contract to build stages one and two in the south precinct of the park.

The first stage of Sylvia Park is due to open in June and the next stage is planned for August.

Multiplex will finish the CPO refurbishment at Britomart in Auckland's CBD within the next six weeks.

On February 7, Multiplex will begin building The Docks apartments on a site bounded by Quay, Tapora and Tangihua streets, Quay Park. The 220-unit nine-level block will have studio, one, two and three-bedroom apartments, and shops and offices.

Last year, Multiplex finished Stratis@Lighter Quay, Victoria apartments on Victoria St West, Bolton apartments in Wellington, Appleby Road Middle School at Albany and Zest in the city.

Multiplex is also finishing the 378-unit, 38-level central-Auckland Residences@Harbour City at 42-58 Fort St, where high spring winds hampered progress late last year. Multiplex was aiming to put up one floor every six days.

Multiplex moved crew on to the site of the planned 30-level 117-unit Sentinel apartment tower block at Takapuna for Rick Martin's Cornerstone Group in November.

It also built Martin's controversial Nautilus apartment block in the heart of Orewa. The Sentinel will be the North Shore's tallest building.

Statistics NZ reported this month that the value of non-residential building consents issued in November surged to $451 million from $309 million in October because of increases in the values recorded for accommodation and hospitals.

In Australia, Multiplex Group said mounting losses from building London's new Wembley Stadium would cut earnings by two-thirds, sparking a slump in its shares which are Australia's worst-performing property stock.

The 90,000-seat stadium has been beset by a dispute with contractors and surging costs, leading the company to lower its profit forecast five times this year.

Multiplex founder John Roberts quit in May and his family, which controls the business, covered A$50 million ($54 million) of losses.

Multiplex said in November the steel bill for the world's most expensive sports stadium would be 4925 million ($63 million) more than previously forecast.