Auckland Council has agreed to extend the time Asset Plus needs for resource consent, funding & shareholder approval before constructing a new $127 million council building at Albany.
Asset Plus had intended to hold a shareholder meeting today to approve the capital-raising, but the Covid-19 pandemic has affected the whole project and that meeting was cancelled.
The company had expected to satisfy all preconditions in the first half of this year, so it could start construction of the net 15,100m² (gross floor area 26,675m²) office block next year for completion by the end of 2022.
The council has agreed to extend the satisfaction date for the funding & shareholder approval condition to 31 July, and possibly to 30 October at each party’s absolute discretion.
Council staff are dealing with the consent, and the development agreement remains conditional on obtaining that by 30 June.
Asset Plus acquired the site at 6-8 Munroe Lane on 2 December for $7.25 million. The proposed 6-level campus-style office building has been 63% pre-leased (by area) to Auckland Council on a 15-year lease from completion, with 2 further 6-year rights of renewal.
18 March 2020: Asset Plus pulls rights issue
11 March 2020: Asset Plus announces rights offer, Augusta to cut its stake
14 February 2020: Asset Plus signs council for Albany development, prepares for capital-raising
Attribution: Company release.