NZX-listed Asset Plus Ltd said on Wednesday Auckland Council had agreed again to extend the timeframe for the company to meet funding conditions for a new council office building at Albany, and had also agreed on lease terms for the former council building at 35 Graham St, overlooking the Viaduct in central Auckland.
The company & council agreed in March to extend the satisfaction date for the Munroe Lane, Albany, building funding & shareholder approval condition from 30 April to 31 July, with an ability to agree a further extension to 30 October. That’s now extended to 30 October, with a further right to extend to 23 December.
Meanwhile, Asset Plus will continue to progress the development in accordance with the previously agreed milestone schedule.
The Graham St building has been headquarters for council planning & consent staff, but is one of a number of buildings the council wants to exit in its aim to make council services more accessible. Asset Plus signed up to buy the 9990m² building for $58 million in April last year, conditional on shareholder approval in June 2019, and the council agreed at that time to enter into a 2-year lease from settlement.
Planning & consent teams, and their customer service centre, are to move to Te Wharau o Tamaki Auckland House at 135 Albert St and Te Wharau o Horotiu Bledisloe House between Wellesley St & Aotea Square.
The council has now taken a conditional lease on the basement & ground floor for a fixed term from 28 June 2021 to 28 December 2021, conditional on the council insurer’s approval to the lease by 19 August.
Mark Francis, managing director of Asset Plus’s 18.85% shareholder, Augusta Capital Ltd, and of Asset Plus’s manager, Augusta Funds Management Ltd, said the lease provided fixed additional income of $1 million, plus a proportionate share of outgoings for Asset Plus, while preserving the company’s ability to undertake soft strip-out, investigative works & internal refurbishment across the balance of the property during the extended lease period. However, certain work required for the preferred development option – a further 3 floors – will not be possible during the extended lease term.
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Attribution: Company release.