NZX-listed Asset Plus Ltd anticipates starting construction of Auckland Council’s new Albany service centre early next year, for completion in 2022.
[This story slipped my notice. Asset Plus announced the development on 20 December, 10 minutes after I posted my last newsletter for 2019.]
- A campus-style office building on Munroe Lane, Albany
- 63% pre-leased (by area) to Auckland Council on a 15-year lease from completion, with 2 further 6-year rights of renewal
- Total net lettable area 15,100m²
- Development expected to start early 2021, completion December 2022
- Resource consent application lodged December 2019
- Estimated cost $127 million, including land
- Expected yield on cost about 5.8%
- Gross floor area 26,675m²
- 6 levels plus 1 basement parking level
- 212 parking spaces
- Floorplates of about 3000m²
- 300m² of expected café, food & beverage, retail outlets on ground level
- Asset Plus acquired the bare land at 6-8 Munroe Lane on 2 December 2019 for $7.25 million
- Development costs are estimated at $120 million
- Construction is expected to begin in 2021, with a targeted completion date of December 2022
- Augusta Capital Ltd subsidiary Augusta Funds Management Ltd & its specialist development team will oversee the project.
Asset Plus chair Bruce Cotterill said in December the development agreement was subject to normal conditions including shareholder approvals, funding & resource consents, which were expected to be satisfied in the first half of 2020.
“Munroe Lane is in the very heart of the Albany basin, within close proximity to local amenity including retail, food & beverage at the Albany Lifestyle Centre & Westfield shopping mall, key transport links including the park-&-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.”
Mr Cotterill said that, in partnership with Auckland Council as anchor tenant, Asset Plus was committed to achieving both a 5-star Greenstar design & build rating and a 5-star NABERS rating for the development.
Augusta’s roles & changing ownership
Augusta Capital Ltd holds 18.85% of Asset Plus’s shares and manages the company. Augusta managing director Mark Francis is also a director of Asset Plus.
A complication which came at the end of January was the announcement by Augusta Capital of the proposed sale of the NZX-listed property investment company to ASX-listed Centuria Capital Group for $2/share, valuing it at $180 million. That wasn’t expected to impact on Asset Plus, though.
Augusta managing director Mark Francis & executive director Bryce Barnett would stay with the business on 3-year contracts to Centuria, which already has strong New Zealand connections.
Mr Cotterill also said in December that Asset Plus had appointed Jarden Ltd to arrange a potential capital raising for Munroe Lane & the anticipated redevelopment of Auckland Council’s Graham St offices.
3 February 2020: Strong NZ connections already for Augusta bidder Centuria
2 December 2019: Asset Plus profit dives as it looks for new investments
27 November 2019: Augusta profit slashed
17 June 2019: Asset Plus shareholders confirm Graham St deal
Attribution: Asset Plus.