A huge new logistics complex at 9 Jerry Green St, South Auckland.
What is Graeme Hart’s Fernbrook Property up to, with its many industrial/logistical building activities in South Auckland? Fletcher Building is slightly like the British monarchy - down-sized far faster than initially expected. How is Fisher & Paykel Appliances going with plans for its new hub?
The new industrial property business Fernbrook, owned by Graeme Hart, has leased buildings it developed in South Auckland but his business is yet to sell two sites advertised last year.
Fernbrook Property, owned by the billionaire’s Rank Group, says on its website that it has leased space in warehouse, logistics and industrial buildings it developed.
Synlait Milk leased a new twin-building development finished last year, with 1.8ha of internal space at 9 Jerry Green St, Wiri. One warehouse is 11,000sq m with 77 car parks while its neighbour is 7000sq m with 50 car parks. That project, not far from Auckland Airport, was completed last March, the website says. A sub-lease is understood to be in place there.
Rhenus Logistics leased building one at 90 Pavilion Dr, Airport Oaks, Fernbrook says. Building two at the same address was leased to freight company Mainstream, Fernbrook’s site shows.
Fernbrook will only take enquiries next year on its 30ha site at 31 Prices Rd, Wiri.
“Fernbrook’s Prices Road Estate comprises approximately 30ha of live-zoned light industrial land. The estate is proximate Auckland International Airport and State Highways 20 and 20B. Bulk earthworks to be completed by mid-2023 and civil works to commence later in 2023. The opportunity exists for design and build developments of buildings comprising up to approximately 30,000 sqm. Enquiries are welcome for buildings available from 2025,” Fernbrook says.
Fernbrook owns a 1.18ha site at 11 Greenmount Dr, and 2.2ha at 68 Cryers Rd.
Attempts to sell two East Tāmaki sites are yet to succeed.
Hart got consultants to seek Auckland Council consent for warehouses: 7200sq m at the Greenmount Dr site, according to Collier’s Greg Goldfinch, working with Edward Washer and Paul Higgins, and 1.2ha of warehouse at Cryers, according to CBRE’s Bruce Catley, Claus Brewer, Lewis Watson and Alex Divers.
Tenders had to be in by November 8 for Greenmount and November 14 for Cryers, unless sold prior.
Now both properties are on multiple general agency listings.
Fernbrook Property says of its estates:
The Economist noted recently that King Charles III had long said he wanted a slimmed-down monarchy: “Few would have imagined its working ranks would have shrunk quite so swiftly or under quite such grim circumstances as they have in recent years,” the publication noted.
Now we are not in any way likening royalty to one of our larger listed companies. But there sure has been downsizing at the top of this one. Changes for Fletcher Building are unprecedented, with two out of three bosses’ departures also executed far faster than initially indicated.
Five people have gone or are going.
Three bosses and two directors are all leaving in a shakeup of the company with a market capitalisation of $3.1 billion.
On February 14, the company said chief executive Ross Taylor would go, but he had a six-month notice period. Then on March 25, concrete division chief executive Nick Traber was named to become acting CEO from March 29 for an interim period until a permanent CEO was appointed.
That meant Taylor was free to go, although Fletcher also said that to ensure an orderly transition, Taylor “will remain available” to support Traber and the business as required until August 23.
On February 14, chairman Bruce Hassall said he would go after the AGM, due around October.
But that was also brought forward. On March 4, the company said Hassall had “decided to step down as chair and director of the company with immediate effect. Mr Hassall’s decision is to expedite the appointment of a new permanent chair, who will then lead the appointment of a new CEO”.
The thinking was it was better to leave it to a new chair of the board to find the new CEO, working with executive search and recruitment specialists Johnson Partners.
Barbara Chapman is acting chair but will not be putting herself forward as permanent chair.
On April 5, Traber said CFO Bevan McKenzie was going, although his departure is being carried out with somewhat less haste. He goes on October 4.
Two directors are leaving too, Fletcher said on March 25: Former and inaugural Auckland Council chief executive Doug McKay on June 30 and Rob McDonald who leaves at the AGM in October and previously had two decades at Air New Zealand where he was chief financial officer.
McKay is chair of safety, health, environment and sustainability and a member of the audit and risk committee. He was appointed in September 2018 so his career with Fletcher has mirrored Taylor’s. McDonald was appointed the same date at McKay and is chair of the audit and risk committee, a member of the disclosure committee and a member of the people and remuneration committee.
The changes were not unwelcome. Suhir Kissun, equity analyst with 13 per cent and majority shareholder Allan Gray in Sydney, welcomed Traber’s appointment.
“Allan Gray commends these developments and the accountability they demonstrate. We wish Nick success in his new role and the board in their efforts to attract suitable candidates. They both have our full support,” Kissun said.
Rohan Koreman-Smit, a Forsyth Barr analyst, said the company had indicated Traber was “probably the leading candidate to become CEO so far”.
What next for the company? Hopefully, a little stability at the top with competent, well-qualified experienced boss and directorship appointments.
Some good news also: the new Horizon Hotel is tentatively due to open next month then the NZICC is due to be finished later this year. At least a new CEO, CFO and chair will begin with a cleaner slate than Taylor, Hassall or McKenzie.
Fisher & Paykel Appliances New Zealand is advancing $220 million plans for its new three-building Auckland base at 830 Great South Rd, Mt Wellington.
Planners Barker and Associates described that in a new application.
In December, F&P Appliances won stage one resource consent from Auckland Council, enabling bulk earthworks for its new campus, according to Barker’s assessment of environmental effects lodged with the council.
In February, it won stage two consent for construction and use of three new buildings and ancillary works was granted.
Now via Barkers, the whitewear business has applied to erect and operate a 55.3m tower crane and a 52m to 89.5m luffing crane to build consented development including new industrial buildings.
The cranes will be on the site for 19 months and will intrude into the regionally significant volcanic viewshaft for Maungakiekie One Tree Hill.
“Details about the proposal were shared with all iwi groups who have an interest in the area and the Tūpuna Maunga Authority on February 26. At the time of writing this report, Ngaati Te Ata Waiohua have expressed an initial interest in the proposal. While other groups are yet to respond, the applicant will continue to engage with mana whenua groups as the application progresses,” the Barker report said.
Karl Flavell of the iwi said it requested consultation and wanted to undertake a cultural impacts assessment.
The same iwi raised concerns about new buildings blocking maunga viewshafts at a planned retirement village on a 3.2ha site in one of Auckland’s wealthiest suburbs. It objected to heights in plans for the large Remuera site where a company and a trust have applied to develop 11 buildings of two to four levels each.
“We do not support development (building height) that adversely impacts upon views (viewshaft) to our tūpuna maunga, particularly Maungakiekie, Maungawhau, Te Kōpuke [Mt St John] and Ōhinerau [Mt Hobson]. The viewshaft going from Kepa Rd to Maungakiekie must remain protected,” the iwi cultural impact assessment said.
On the Fisher & Paykel Appliances site, Barker said the irregularly-shaped single lot site is 22,856sq m, fronts Great South Rd to the west and Holloway Pl to the north.
F&P Appliances’ application for the two cranes has been publicly notified and from April 10, anyone has been able to have a say.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
Fletcher Building, Spark and Ryman are potentially all on the radar.