New Fonterra HQ plans on track

Fonterra's current head office on Princes St, central Auckland. Photo / Chris Gorman

Planning for Fonterra's new world headquarters is still going ahead as planned, says a real estate chief involved in the deal although he expressed concerns about the threat of the contamination scandal to New Zealand business confidence.

John Dakin, Goodman Property Trust chief executive, spoke about Fonterra's planned waterfront project after this afternoon's annual meeting in Auckland.

Goodman is in a joint venture with Fletcher Construction to build the massive new JASMAX-designed office precinct on Fanshawe St/Halsey St corner.

"We're all concerned that they get on top of the issues. At a macro level, we're in a phase where we are getting more development and we're working on getting a lot more. What New Zealand doesn't need is a dent in its business confidence, so everyone is concerned about that," Dakin said.

Construction is scheduled to start later this year.

"We're still working through the detail around the building, precinct and the whole area," Dakin said.

The contamination issue had not affected that planning.

"From our perspective, it doesn't make any difference. They've announced their preferred site and we're the preferred parties," Dakin said of Goodman and Fletcher.

Earlier this year, plans were announced for the huge new structure when the dairy giant issued a statement, from Chris Caldwell, managing director of people, culture and services.

"While there was still some work to do before the co-operative would sign a lease, the preferred site would enable all Fonterra's employees in the area to be based in one location, instead of several as they are now," Caldwell said.

"Being closer together will enable our people to work together more seamlessly. This will provide a real opportunity to enhance the way our people feel about coming to work every day."

Fonterra will not own or develop the building. It will be developed by the Goodman Group/Fletcher Building partnership and ultimately owned by the Goodman Group. Fonterra would take a long-term lease, Caldwell said.

The co-operative is in several buildings around Auckland's CBD but its main office is at 9 Princes St.