Archive | Precinct Properties

Precinct bond issue fully subscribed

The margin for Precinct Properties NZ Ltd’s new $100 million of bonds has been set at 1.50%/year over the 7-year swap rate, and the interest rate has been set at 4.42%/year.

Precinct offered $75 million of secured unsubordinated fixed-rate bonds plus $25 million in oversubscriptions, which were all taken up.

All the bonds have been allocated to intermediaries for distribution to their clients. No public pool is available. The bonds will be issued on 27 November.

Earlier story:
13 November 2017: Precinct launches bond issue

Attribution: Company release.

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Precinct launches bond issue

Precinct Properties NZ Ltd launched its $100 million bond issue today – up to $75 million of secured unsubordinated fixed-rate 7-year bonds, with the ability to accept $25 million more – to institutional & New Zealand retail investors. There’s no public pool.

The indicative margin range above the 7-year swap rate is 1.5-1.6%/year, subject to a minimum interest rate of 4.4%/year. The margin & interest rate will be set on Friday 17 November following a bookbuild process.

Link: Indicative terms sheet

Earlier story:
10 November 2017: Precinct expects to open bond offer next week

Attribution: Company release.

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Precinct Properties targets future markets

Apart from confusion about whether to vote on director appointments by show of hands or by filling in paperwork, and uncertainty over what impact changes at Ports of Auckland might have, Precinct Properties NZ Ltd’s annual meeting yesterday was all forward progress.

The vote was an odd issue to get caught up in. When company chair Craig Stobo said the vote would be by hand, one shareholder asked: “Are you saying proxies don’t count?”

Shareholders Association representative Grant Diggle told Mr Stobo the association’s longstanding policy was to hold polls, for transparency, disclosure & good governance. Deputy chair Don Hulse – stepping in for Mr Stobo, who was one of 2 directors facing re-election – said the vote would proceed with a show of hands but, if shareholders demonstrated a strong desire for a poll, that would follow.

The vote was strongly in support of re-election and the poll was avoided. But, at another NZX-listed company meeting in the same building a few hours later, unitholders of the Vital Healthcare Property Trust voted by poll, the outcome was delayed, but nobody found it a problem.

Risk profile lowered, portfolio quality up

Mr Stobo said in his address to the meeting Precinct had reduced its risk profile as major developments were completed or passed construction milestones, and it was lifting portfolio quality.

Net profit after tax was up 17.3% to $162.1 million after achieving a revaluation gain of $77.5 million, and net tangible assets/share rose 6% to $1.24.

A bond offer, expected to be opened next week, will continue the company’s diversification of its funding sources. In September, Precinct raised $150 million of 4-year, fixed-rate subordinated convertible notes, reducing its gearing from 25% to 18%. Mr Stobo said both notes & bonds were capital management solutions which suited Precinct’s current strategy & opportunities: “It gives us the comfort of having the capital available to match our development commitments while ensuring that earnings are not diluted in the short term. Post-issue [of the notes], our committed gearing has reduced, supporting growth through a flexible funding option.”

Precinct reviewed its dividend policy last year, matching dividends with cashflow, as defined by adjusted funds from operations (AFFO), with the aim of producing a more transparent & sustainable dividend flow.

The company has indicated before that it expected dividends to rise as it advances its development programme. For the first quarter of the 2018 year, it’s lifted the dividend by 3.6% to 1.45c/share, and it expects to pay 5.8c for the full year (up from 5.6c), maintaining a 90% payout ratio.

100% occupancy

Chief executive Scott Pritchard presented a slide to the annual meeting to show the growth in portfolio occupancy, now 100%, and the weighted average lease term increasing to almost 9 years, then talked of how to improve performance further: “Precinct has always been a city centre specialist and we will continue to invest in high quality, strategically located office real estate. However, both the board & management believe that, to advance our position as a city centre specialist, considering a broader mix of real estate offers greater opportunity for Precinct to create value for shareholders.

“City centres around the world are enjoying a resurgence. We are taking advantage of this growth in a variety of ways. Commercial Bay is a great example, with Precinct developing a premium retail offering in the heart of the cbd. Fundamentally, we are growing in, and with, the cities we are part of.

“We have a clear strategy for creating vibrant environments with a broad retail, leisure and food & beverage offering. Our aim is to create precincts that our clients like working in, and that cbd residents, visitors & whole communities enjoy being in.”

Developing for the future

Perhaps one of the most important features of the strategy is to develop real estate for the future – a quite different view from developing property with an immediate cashflow in mind and extending it as long as you can.

“We currently have $900 million of developments which are underway and have identified a further $600 million development pipeline within our portfolio. This is a significant increase from 5 years ago, when the business had no development capability.

“…. Not only are our earnings growing, but we are also achieving a significant increase in portfolio quality. Achieving a positive result in all 3 measures [earnings, weighted average lease term as a result of development activity and the decline in the average age of the portfolio] is a great outcome and further reinforces the strength of our business.

“Our asset age has nearly halved, from 21 to 11 years. Along with an extended weighted average lease term & full occupancy, we have secured & advanced development in highly strategic locations. We have shifted more weighting to Auckland, which now accounts for 72% of our portfolio.

“Our focus on city centres, particularly Auckland, is very positive. With continued growth supported by key drivers such as net migration & tourism, we believe we are well placed to benefit from the city’s strong growth going forward.”

Commercial Bay at centre of change

Precinct’s biggest central city project is Commercial Bay, under construction between Queen, Customs, Albert & Quay Sts and above the rail tunnels into Britomart.

“Auckland is growing and this looks set to continue. And, like cities all around the world, it is seeing increasing centralisation. This slide illustrates the committed & forecast private & public investment in Auckland city. Most of the works are occurring in close proximity to Commercial Bay.

“A major focus for Precinct continues to be the extensive public regeneration which is set to occur on all streets surrounding Commercial Bay. Auckland is growing fast and billions of dollars are being invested in regional infrastructure such as the city rail link & new bus network. Of course, more recently there has been the commitment by New Zealand’s new government to a light rail system which will support Auckland city’s ongoing economic performance.

“Our research shows Auckland city centre population growth in 2016 was 17% and it is now growing 6 times faster than Auckland as a whole. With over 12,000 people moving to the city centre in the last 3 years, the population is already 15 years ahead of previous predictions of 45,000 people by 2032.”

As for Commercial Bay itself, Mr Pritchard said: “Having launched the project in 2015, we have gained an additional $88 million increase in the project’s value. Lease commitments have also increased to around 50% of the retail space and 66% of the office space. We are attracting leading corporate clients, and we are particularly pleased about the high quality of local & global retail & food brands choosing Commercial Bay. They will give Auckland a whole new retail & dining experience in the heart of the city.

“We are now forecasting a development profit for Commercial Bay of $213 million, reflecting a return on cost of 31%.

“Commercial Bay will include a range of food & beverage, including a communal dining offer designed by the legendary New York-based AvroKO, who are one of the world’s most respected names in hospitality design.

The name for this food offering is Harbour Eats, which is distinctively Kiwi, but AvroKO will bring the international flair. The 700-seat eatery will use plenty of natural greenery & foliage, making most of the open air atrium that will sit right at the waterfront location. This will be a truly world-class dining precinct.”

Wynyard Quarter

In the Wynyard Quarter, Precinct has completed stage 1 of its Innovation precinct: “The first stage of Wynyard consists of 2 buildings totalling around 13,000m² of office space. Achieving 100% occupancy upon completion of both buildings is a great result and we are delighted to see the development complete ahead of programme and consistent with budget. Precinct has achieved a development profit of 18%, or $16.2 million, on this project.

“Our involvement in this Innovation precinct shows how we are meeting different client needs in different ways, and our commitment to building strong partnerships. This is achieved through a joint venture with Panuku Development Auckland, an Auckland Council-controlled organisation, and on what is the last site left on Auckland’s waterfront.

“Our buildings here have a particular focus on sustainability & innovation. During the year, we acquired a 50% interest in Generator NZ Ltd, the co-working & shared office space provider. Quality co-working spaces are growing and are substantial businesses in cities around the world. We see the acquisition of a stake in Generator as being consistent with our strategic focus on building client relationships and increasing our service levels.

“This year Generator was also appointed by Ateed (Auckland Tourism, Events & Economic Development) to manage Grid AKL in the Innovation precinct, where it now operates almost 10,000m² of space and is leading an approach to co-working spaces we expect to see grow.”

Bowen Campus

In Wellington, Precinct’s Bowen Campus project is at the centre of a Government precinct: “As with Wynyard Quarter, we enjoyed both a revaluation uplift at Bowen and 100% leasing pre-commitment following the Crown exercising their right to lease the remaining vacant floors at the campus.

“The Kaikoura earthquake changed the fundamentals of the Wellington market, with many buildings still closed. With limited prime stock available, all research houses are predicting increased occupier demand. However, we too have been impacted following the earthquake, with Deloitte House being closed for a period and remaining largely unoccupied since it reopened in March. Investigations are continuing to be undertaken to try & identify the best solution for the property & its existing clients.”

Further opportunities 

Mr Pritchard said several more, attractive development opportunities available within its portfolio: “Our property at 1 Queen St is part of the Commercial Bay precinct and enjoys a prime waterfront location offering very good potential for further development as this whole area continues to grow.

“At Wynyard we have the option to develop 3 remaining sites covering 30,000m², and we are already in discussion with occupiers for stage 2, developing another 8000m².

“At Bowen Campus we can build a further 20,000m² of office space suitable for government & corporate occupiers.
“Each of these opportunities provides Precinct with feasible opportunities. We hope to commit to the second stage of Wynyard Quarter within the next year.”

Attribution: Annual meeting, presentation.

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Precinct expects to open bond offer next week

Precinct Properties NZ Ltd expects to release full details next week of an offer of secured unsubordinated fixed-rate 7-year bonds to institutional & New Zealand retail investors.

The NZX-listed company has appointed ANZ Bank NZ Ltd as arranger and ANZ, together with First NZ Capital Securities Ltd & Forsyth Barr Ltd, as joint lead managers. Precinct has also appointed Hobson Wealth Partners Ltd as the co-manager.
Attribution: Company release.

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Precinct sets notes interest rate

Precinct Properties NZ Ltd allocated $125 million of 4-year convertible notes today at 4.8%/year, the minimum interest rate under the offer. It has another $25 million of notes available under its priority offer.

Today’s allocation included the maximum $25 million of oversubscriptions.

Minimum application amounts are $5000 under the general offer, which closes on Friday 22 September, and $1000 under the priority offer, to eligible NZ-resident Precinct retail shareholders, closing on Tuesday 19 September.

Today’s bookbuild setting the interest rate was for participants in the general offer.

Link: Precinct notes product disclosure statement

Earlier story:
27 August 2017: Precinct launches 4-year convertible notes

Attribution: Company release.

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Precinct launches 4-year convertible notes

Precinct Properties NZ Ltd expects to open its $150 million 4-year subordinated convertible notes offer on Tuesday 5 September. The company lodged its product disclosure statement on Friday.

The notes will be convertible into ordinary shares at the lesser of $1.40/share or a 2% discount to the market price. Conversion date is 27 September 2021.

Precinct said on Friday it would make a priority offer of up to $25 million of notes to eligible New Zealand-resident retail Precinct shareholders, closing on Tuesday 19 September, and a $100 million general offer, with the ability to accept $25 million of oversubscriptions, to NZ-resident investors & certain overseas institutional investors, closing on Friday 22 September. There is no public pool.

Any notes not taken up under the priority offer can be reallocated to the general offer.

Precinct will retain the right to pay a cash amount to noteholders at the end of the term rather than converting the notes into shares. In this case, noteholders would be paid an amount equal to the market price of all the shares that would have otherwise been issued on conversion, so they receive an equivalent value to those shares and will similarly benefit from any appreciation of the share price above $1.40.

The indicative margin range above the 4-year swap rate for the notes is 2.25-2.45%/year, subject to a minimum interest rate of 4.8%/year. The margin & interest rate will be set on Monday 4 September following a bookbuild process and will be announced shortly after.

Under certain circumstances, interest payments can be suspended and the notes can be converted early.

Link: Precinct notes product disclosure statement

Attribution: Company release.

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Precinct lifts profit, plans notes issue

Precinct Properties NZ Ltd lifted its net profit after tax by 17.3% in the June year to $162.1 million ($138.2 million in 2016).

The commercial property investor now has a large development portfolio at Commercial Bay on the former Downtown shopping centre site in downtown Auckland, the Wynyard Quarter and, in Wellington, Bowen Campus, and it’s expecting to make a $150 million notes issue this month as the first stage in diversifying its funding.

Chief executive Scott Pritchard said yesterday: “A strong revaluation gain, reduced interest & tax charges and an unrealised gain on financial derivatives have all contributed to the increase. Net operating income (distributable earnings), which adjusts for a number of non-cash items, has increased from $72.8 million to $74.7 million. On a cents/share basis, this was in line with guidance and up 2.7% to 6.17c/share (2016, 6.01c/share).”

Net property income reduced to $90.4 million ($104.5 million). Adjusting for developments & seismic repair costs, like-for-like net property income rose by 0.7%, with Auckland increasing by 1% and Wellington flat.
Precinct’s portfolio value increased to $2.04 billion ($1.70 billion) due to the valuation gain & the large development spend.

Result highlights:

  • Net profit after tax up 17.3% to $162.1 million ($138.2 million)
  • Net operating income up 2.6% to $74.7 million ($72.8 million
  • Property portfolio revaluation gain of $77.5 million ($81.2 million)
  • NTA/share up 6% to $1.24 ($1.17)
  • Full-year dividend up 3.7% to 5.6c/share (5.4c/share), representing a 90.8% payout ratio
  • Earnings guidance for the 2018 financial year, net operating income of about 6.3c/share, and dividend expected to rise 3.6% to 5.8c/share.

Advancing developments:

  • Wynyard Quarter stage 1 in Auckland has been completed and Bowen Campus in Wellington is well underway, both projects recording a revaluation uplift
  • The as-if-complete value of Commercial Bay in downtown Auckland increased by $88 million to $941 million
  • 46% of Commercial Bay retail space committed
  • Post-balance date, the Government advised that it intended to lease the remaining office space at Bowen Campus, taking the office pre-commitment to 100%.

Strengthened portfolio:

  • Occupancy increased to 100% (June 2016, 98%)
  • An extended weighted average lease term across the portfolio of 8.7 years, including developments
  • 56 leasing transactions on 37,500m² of space secured
  • The portfolio is under-rented by 4.7% (June 2016: 3.6% under-rented)
  • Advanced strategic focus on high levels of client service with the acquisition of a 50% interest in co-working space operator Generator.

Sustainable growth:

  • Reflecting development progress, gearing increased to 25.1% (30 June 2016, 14.4%)
  • Precinct is also considering issuing a subordinated convertible note
  • Post-issue, committed gearing is expected to reduce, supporting growth through a flexible funding option.

The convertible note issue

Precinct is considering making an offer of up to $150 million of 4-year fixed-rate, subordinated convertible notes to institutional & New Zealand retail investors. The offer is expected to consist of a priority offer to eligible New Zealand-resident retail shareholders, and a general offer.

Mr Pritchard said: “Precinct has pre-funded its extensive existing development pipeline, including Commercial Bay. However it is considering issuing the notes to provide the company flexibility to pursue prudently other projects, should they arise.”

The conversion price to convert the notes into Precinct ordinary shares will be set at the lesser of:

  • a fixed price/share (conversion price cap), and
  • a 2% discount to the 20-day volume-weighted average price (market price).

Precinct may elect instead to pay a cash amount to noteholders at the end of the term rather than converting the notes into shares. In this case, noteholders would be paid an amount equal to the market price (as described above) of all the shares that would have otherwise been issued on conversion of their notes, so they receive an equivalent value to those shares and similarly benefit from the 2% discount & share price appreciation above the maximum conversion price.

The company expects to release full details of the offer this month. Mr Pritchard added: “Post-issue, we expect to further diversify our funding sources and reduce our leverage, providing Precinct with the capacity to consider future opportunities.”

Link: Precinct 2017 annual report

Attribution: Company release.

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Precinct gets 4.5% revaluation gain with more expected

Precinct Properties NZ Ltd said on Friday its $89 million valuation gain in the year to June had lifted the portfolio value over the $2 billion mark.

The 2017 valuation gain was up 4.5% on the $81 million last year.

The valuations were carried out by independent valuers, are subject to final audit, finalisation of year end book values and will be confirmed in the financial results for the year ending 30 June 2017, to be announced 17 August.

Chief executive Scott Pritchard said that, excluding Deloitte House in Wellington, the overall portfolio valuations were up 5.3% on forecast book values.

The Auckland portfolio gained 6.8%, Wellington 1.5%. Mr Pritchard said those increases were mainly attributable to continued compression in capitalisation rates, together with market rental growth. Deloitte House’s valuation declined by $14 million, with further work completed on remediating & seismically improving the building following the November 2016 Kaikoura earthquake.

“Precinct’s active development pipeline has contributed strongly to the value uplift. Commercial Bay (Auckland) & Bowen Campus (Wellington) ‘on completion’ values have increased by around $94 million to $1.176 billion.

“This was mainly due to an increase in the value on completion of Commercial Bay of $88 million to $941 million. Forecast net profit from both developments combined has increased to be around $250 million, of which about $160 million as at 30 June 2017 has yet to be recognised.”

Attribution: Company release.

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Precinct lifts profit and advances office strategy

NZX-listed property investor Precinct Properties NZ Ltd – now in development mode as it builds & enhances its own sites – lifted net profit after tax by 12.4% in the December half-year.

It reported quick progress from 3 development precincts – Commercial Bay in downtown Auckland, the nearby Wynyard Quarter and, in Wellington, a start on Bowen Campus.

The company announced the leasing of 2700m² on 2 floors in the new PWC Tower at Commercial Bay to law firm DLA Piper, which wants to create new-style workspaces there.

Precinct added to that vibe by announcing it had taken a 50% interest in Generator, which operates 3000m² of co-working space at 3 sites at Britomart.

Image above, October 2016: Looking through Commercial Bay, Precinct Properties’ redevelopment of the Downtown Shopping Centre site (the remains of the building at right, now demolished and with earthworks started for the rail tunnels into Britomart Station); the view from the current PWC Tower across Commercial Bay to the old central post office at Britomart, through the station and on to EY & Westpac’s offices.

Half-year performance summary:

  • Net profit after tax increased by 12.4% to $39.1 million ($34.8 million in 2015)
  • Net operating income increased by 8.7% to $38.8 million (35.7 million)
  • Half-year dividend of 2.8c/share (2.7c/share), representing a 3.7% year-on-year increase
  • Earnings & dividend guidance for the 2017 financial year unchanged at 6.2c/share for earnings and 5.6c/share for dividen
  • Strong financial position with loan:value ratio 20.1% (14.4% at 30 June 2016).

Development progress

Wynyard Quarter:

  • Stage 1 100% leased, 8 months ahead of completion. The $35.9 million Mason Brothers building was the first project to be completed in December and represents a major milestone for the business.

Commercial Bay:

Commercial Bay is the name Precinct has given to the former Downtown Shopping Centre site that ran from Lower Queen St across to Albert St, and the length of that block on Customs St West through to Quay St on the city waterfront.

It also now incorporates the former Queen Elizabeth Square that sat between 2 Precinct-owned buildings along Lower Queen St, HSBC House fronting Quay St and Zurich House on Customs St.

Earthworks are underway for the 39-floor tower on the corner of Customs St West & Albert St and for the city rail link tunnels that will run into Britomart beneath the commercial structures, and accountancy firm PricewaterhouseCoopers has taken naming rights on the tower. PWC has had naming rights on the tower across Albert St & fronting Quay St, also owned by Precinct, since it opened in 2003.

Excavation, retaining & piling are expected to be largely complete by the middle of 2017.

  • Global law firm DLA Piper has committed to 2 floors in the new PwC Tower, taking preleasing by income at the new tower to 64% (from 52% at December 2015) on a weight average lease term of 13.3 years. This commitment takes the amount of space secured outside the portfolio to 8000m² or about a third of committed leases
  • The agreement to acquire Queen Elizabeth Square on Lower Queen St from Auckland Council became unconditional in December and all resource consents were obtained.

Portfolio-wide:

  • Preleasing across all of Precinct’s office developments is now 77%
    99% portfolio occupancy and strong weighted lease term
  • Leasing over the period has been strong, particularly in Wellington, with overall occupancy rising to 99% (98% at 30 June 2016)
  • Weighted average lease term across the portfolio is 5.9 years (6.3 years at 30 June 2016), increasing to 8.1 years after including developments
  • Following the Kaikoura earthquake, a $12 million devaluation has been booked at Deloitte House in Wellington, based on provisional repair estimates.

Enhancing the strategy

Precinct chief executive Scott Pritchard said the increase in net profit was mainly attributable to lower interest & tax expense and a fair value gain in financial instruments. Net operating income, which adjusts for a number of non-cash items, increased 8.7% ($3.1 million) to $38.8 million ($35.7 million at December 2015) or 3.2c/share.

But the performance goes well beyond immediate income: “We achieved a number of milestones across our business and have significantly advanced our long-term strategy.

“We committed to & commenced works at Bowen Campus in Wellington, progressed works at Commercial Bay, including the demolition of the old shopping centre, enjoyed leasing success at Commercial Bay and completed the Mason Brothers building at Wynyard Quarter stage 1.

“The completion of the Mason Brothers building is a major milestone for the business as it is the first project to be completed and sees Precinct begin to transform its portfolio.”

Looking through again, November 2016: This view shows the nose of a cruise ship poking through between 2 Precinct buildings, the HSBC tower at 1 Queen St and Zurich House at 21 Queen St. In the foreground, works have started for the rail tunnels into Britomart from Aotea Station & Albert St, and for the Commercial Bay redevelopment.

At Commercial Bay, DLA Piper’s commitment to 2700m² was a signing from outside Precinct’s existing portfolio, which Mr Pritchard said illustrated the attraction of this cbd waterfront precinct.

The agreement to acquire Queen Elizabeth Square from Auckland Council became unconditional in December. The land is now formally incorporated into the Commercial Bay retail development due to open in late 2018: “This provides certainty to allow the retail leasing programme to advance responding to significant interest from retailers.”

Mr Pritchard said the conditional acquisition of a 50% interest in Generator aligned well with Precinct’s values & its strategy of being a city centre specialist: “It has a strong management team and offers the opportunity to enhance the amenity & service levels that Precinct can offer its clients. It will also enable Precinct to expand its traditional client base with smaller businesses, helping to grow occupancy & demand.”

Interim results                                                                                         

Net property income reduced to $45.9 million ($53.7 million). M Pritchard said: “After adjusting for recent asset sales & foregone income associated with our development projects, like-for-like income was $0.7 million lower than the comparative period. This reduction was a result of the 14 November Kaikoura earthquake. After allowing for the rental abatement at Deloitte House and earthquake-related costs, like-for-like income was slightly higher than the comparative period.

“Precinct’s Wellington portfolio performed very well during the earthquake, with all but Deloitte House being assessed by engineers & reopened within 48 hours.

“Precinct’s structural engineers, Holmes Consulting, were instructed to undertake a detailed structural investigation of Deloitte House, which concluded relatively minor structural damage had occurred. Notwithstanding this, further detailed assessments have identified that the seismic strength of the building is lower than previous assessments.”

Mr Pritchard said an internal review of the 30 June 2016 property valuations indicated no material value movement in the period for all the assets, apart from Deloitte House. The provisional estimated cost associated with remediating the damage and making seismic improvements resulted in the independent valuation of Deloitte House falling by $12.1 million to $33.4 million ($45 million at June 2016).
The value of net tangible assets/share at interim balance date was unchanged from June at $1.17 (June 2016: $1.17).

Link:
Precinct 2017 interim report

Related stories:
17 February 2017: Precinct buys into co-workspace specialist Generator
DLA Piper signs for Commercial Bay
21 December 2016: Precinct’s QE Square purchase unconditional

Attribution: Company release.

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Precinct buys into co-workspace specialist Generator

Precinct Properties NZ Ltd has conditionally acquired a 50% interest in the Generator business, which operates 3000m² of co-working space at 3 areas in Britomart, notably in the revitalised buildings on its Customs St East frontage (pictured above).

Ryan Wilson.

Generator chief executive Ryan Wilson, who co-founded it in 2010, describes it as “a workspace revolution for a new breed of ‘black collar’ workers – a stimulating space that combines leading edge technology with the latest design. Simply put, the coolest office in the world available & affordable for small, creative & entrepreneurial businesses.”

And Precinct chief executive Scott Pritchard said yesterday: “Generator is well aligned with Precinct’s strategy of being a city centre specialist. It has a strong management team and offers the opportunity to expand the market in which Precinct operates and to enhance the amenity & service levels that Precinct can offer its clients.”

Generator’s ‘curated’ community encompasses 107 member companies, including award-winning local startups & beachhead offices for global operators. Mr Wilson said it had grown strongly & consistently over its first 6 years, and the partnership with Precinct came at a perfect time to escalate that growth to a new level.

“Precinct is a serious operator in the property business in New Zealand, and this partnership gives Generator a solid foundation for its own expansion plans and the rollout of an exciting schedule of programmes & services that will support our business ecosystem.”

He said its success had been achieved through the provision of specialised, professional & a highly curated co-working membership experience: “We place a great deal of emphasis on ensuring that members have a discreet, modern, relaxed & comfortable environment in which to work (and socialise), but we also believe there is an equal need to ensure our members can present a more formal & highly professional face to the market when the situation demands.

“This extends both to the range of office environments & the facilities offered. Initiatives in the pipeline include rapid development of GENHUB, our digital community & information platform that allows members to interact with Generator’s services and discover collaboration opportunities, a new in-house investment programme, member incentive scheme & international scholarship programme.

“We are always mindful that we exist because our members choose to be with us, which means we are constantly on the lookout for innovative ways to help our member businesses grow & succeed.”

Earlier story:
15 June 2016: Generator expands again

Attribution: Company release.

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