Macquarie seeks major stake in greenfields Ra Ora site

By Chris Hutching

Friday 11th June 2004

Australian-listed Macquarie Goodman is buying a majority stake in a 153ha Auckland property owned by trusts associated with the estate of Sir Woolf Fisher and Noel Robinson, chairman of the project called Highbrook Business Park.

"With a land value of just under $100 million, this is the largest single commercial land transaction in New Zealand's history," said David Bayley of Bayleys Real Estate, who brokered the deal with John Cameron of Jones Lang LaSalle.

Highbrook was previously the late Sir Woolf Fisher's Ra Ora thoroughbred stud located on Auckland's Waiouru Peninsula in East Tamaki.

The $1 billion redevelopment over several years envisages a 60ha public park, with about 110ha dedicated to business use. The site is 30% bigger than the total Albany industrial area and will include a mix of offices, warehouses and light industry in a wooded setting.

The plans for the park were revealed in the New Zealand Property Investor on Monday and Macquarie announced its deal to buy the majority stake mid-week.

Highbrook has already spent $15 million of design plans and US design company Peter Walker and Partners has been working on the project for about six years, recently receiving an international design award from the American Society of Landscape Architects.

The company has also enjoyed public profile in the US for its recently accepted design of a memorial park on the site of the twin towers in New York as part of an overall redevelopment.

San Francisco-based Walker was in New Zealand a couple of weeks ago when he told The National Business Review how Highbrook would enhance the natural features of the property, such as the volcanic cone and Maori sites.

He said he aimed to retain aspects of the unspoilt farm-like setting and the site offered greater opportunities for an innovative and comprehensive greenfields development.

The deal involves Australian-listed Macquarie Goodman Industrial Trust and Macquarie Goodman Management each respectively agreeing to buy 37.5% for $34.2 million (totaling $68.4 million) with the remaining 25% retained by trusts associated with the estate.

John Dakin, chief executive officer of Macquarie Goodman (NZ), said the New Zealand-listed Macquarie Goodman Property Trust (which has co-ownership and development arrangements with Macquarie Goodman Industrial over other industrial developments) was excluded from the deal because involvement "would increase the trust's development weighting to an undesirable level at this time.

"However, we foresee involvement in the medium term to support and enhance our portfolio as it grows."

The Macquarie Goodman strategy may prompt questions from unit holders about whether both trusts benefit equally from such arrangements.

Meanwhile, the acquisition cements Macquarie Goodman's position as one of the country's leading industrial park developers over the next decade, according to Greg Goodman, chief executive officer of Macquarie Goodman Management and the second son of Sir Pat Goodman, whose family interests have a major stake in the Macquarie Goodman companies.

Macquarie Goodman Manager will be the project and development manager and work on the first stage, which is scheduled to begin at the end of the year although it is understood that it hinges on a decision by Transfund, expected on June 21, to provide funding for a road interchange that will connect the land to state highway one between Otahuhu and Otara.

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