Asset Plus announces development of a 15,100m2 office building in Albany backed by a 15-year Agreement to Develop and Lease with Auckland Council
Asset Plus (NZX:APL) today announces the entry into a conditional Agreement to Develop and Lease (“Development Agreement”) with Auckland Council to construct a 26,675m2 gross floor area and 15,100m2 net lettable area (NLA) office building with 212 carparks in Munroe Lane, Albany. Auckland Council will be the anchor tenant for the new office building, agreeing to lease nearly two thirds of the total office NLA on a 15-year lease from completion in December 2022. The Development Agreement is subject to normal conditions including shareholder approvals, funding and resource consents which are expected to be satisfied in the first half of 2020.
Asset Plus Chairman, Bruce Cotterill said: “We are thrilled to announce the development of an iconic and significant office building in Albany in collaboration with Auckland Council. This area has seen, and is expected to continue to see, significant growth and development as a key node of North Auckland. Munroe Lane is in the very heart of the Albany basin, within close proximity to local amenity including retail, food and beverage at the Albany Lifestyle Centre and Westfield shopping mall, key transport links including the park-and-ride which will see increased utilisation once the dedicated bus lane into Albany is completed, along with extensive leisure amenity including the North Harbour stadium.”
In partnership with Auckland Council as anchor tenant, Asset Plus is committed to achieving both a 5-star Greenstar design and build rating, and a 5-star NABERS rating for the development. Mr Cotterill said “We are delighted to have partnered with Auckland Council to provide office accommodation for their council office hub in Albany. Our common interests in creating a well located and sustainable building, adopting a collaborative and partnership-based approach clearly resonated.”
Mark Francis, Managing Director of Augusta, the Manager of Asset Plus, commented: “The acquisition and development of Munroe Lane is the second landmark acquisition for Asset Plus in 2019, building on the momentum that has been gathering for Asset Plus recently. Asset Plus actively targets opportunities for value-added investment in the property sector, with the Munroe Lane acquisition and development meeting all of our key investment objectives.”
Key forecast metrics for the development include:
• The bare land at 6-8 Munroe Lane was acquired on the 2nd of December 2019 for $7.25 million.
• Development costs are estimated at $120 million.
• Construction is expected to commence in 2021, with a targeted completion date of December 2022. Development will be overseen by Fund Manager, Augusta, and their specialist Development Team.
• Auckland Council have signed an initial 15-year lease with two 6-year rights of renewal over 63% of the NLA.
With the committed development plan for Munroe Lane and the anticipated re-development of Graham Street in the near term, Jarden has been appointed to arrange a potential capital raising. Asset Plus will update shareholders on the details and timing of any capital raising and on the timing of the shareholder meeting to approve the Munroe Lane development during the first quarter of 2020.
Further details on the development are contained in the attached presentation.
For further information, contact:
Chairman, Asset Plus Limited
021 668 881
Managing Director, Augusta
Funds Management Limited,
Manager of Asset Plus Limited
09 300 6161