KEY POINTS:
A $20 million powerline trenching and rewiring job has begun at the $1 billon Highbrook business park in Auckland.
Transpower's high-voltage lines cross the waterfront business park, which is being developed on the Waiouru peninsula beside Otahuhu B Power Station by ASX-listed Australian investor Goodman Group.
Goodman is selling finished buildings to its associate NZX-listed Goodman Property Trust, in which it holds a 28 per cent stake.
The $1.2 billion Goodman trust is buying finished buildings to generate earnings for its 7000 investors buthas shied away from developing the property itself, saying this is toorisky.
Goodman Group has finished a number of large-format buildings at the site. And while more buildings rise, work has begun to alter the power pylons which march across theland.
Gillian Holm, the trust's marketing manager in Auckland, said the work would lessen the visual impact of the existing overhead transmission lines within the business park and neighbouring parkland.
Some wires will run underground and others will be transferred from stout pylons to mono-poles which have less visual impact.
She said Highbrook Development - controlled by the Australians - was paying for the work.
"Goodman Group own a 75 per cent interest in Highbrook Development with Fisher Nominees [New Zealander Noel Robinson] who own 25 per cent. It is this entity that is funding the works.
"Transpower is doing the work, which will see 21 tall lattice towers replaced with nine mono-poles and 2.5 kilometres of underground cable," she said.
A large number of businesses now operate from Highbrook, including DHL New Zealand, McPhersons Consumer Products, BMW New Zealand, Cottonsoft, and Big Chill.
New Zealand Post is moving staff from its Auckland CBD division to a new purpose-built mail-handling depot at Highbrook.
John Dakin, chief executive of the Goodman Property Trust's manager, said construction work was now moving into the northern section of the development in Auckland, an area tagged for year six when the project was only at year three.
The trust has a market capitalisation of $993 million and its units are trading at $1.54, down on the 12-month high of $1.62, on a price-earnings ratio of seven.
Dakin said tax changes under the portfolio investment entities regime had helped the stock.
The trust said last week it was developing warehouse and distribution buildings at Westney Industry Park in Mangere for Fliway Group and Supply Chain Solutions.
The buildings would cost $14.5 million and when they were finished, 57 per cent of the park's site area would have been developed.
At the Glassworks Industry Park in Christchurch, the trust has leased an 1800 sq m warehouse, office and showroom building to NZ Safety. That building would cost $2.8 million to develop, Dakin said. Fisher & Paykel Appliances and Big Chill Distribution have also leased buildings in this park.
Goodman Trust
* Formerly Macquarie Goodman Property Trust.
* It is buying new buildings at Highbrook in Auckland.
* It is developing other sites in Auckland and Christchurch
