Precinct Properties NZ Ltd has acquired the remaining 50% of flexible office space provider Generator NZ Ltd for $7.4 million, after buying half the company in May 2017.
Precinct chief executive Scott Pritchard said today the strategic acquisition was a fantastic opportunity to expand further into the fast-growing flexible space market: “Generator allows us to provide flexible office space and meeting & events solutions to a broad range of New Zealand businesses, while maintaining our reputation for providing high-end, world-class city-centre office spaces.
“After working closely with the Generator team for nearly 2 years, we have been incredibly impressed with how its collaborative approach to working with its members to support their success has led to strong demand for its spaces. Generator is delivering consistent growth & high occupancy levels from its unique offer in the office space market – the complete acquisition of Generator was a no-brainer for Precinct.”
Ryan Wilson founded Generator in 2011 and it’s experienced exceptional growth since inception. Since Precinct bought into it in 2017, Generator has quadrupled in size and now has a significant presence in 5 city-centre locations – 3 in Britomart & 2 in the Wynyard Quarter.
Mr Wilson said: “At its core, Generator is about a basic human need for connection & to belong to something greater than just themselves. It’s a community of people inspired by a common set of values, trying to carve their own niche in the world. Generator is about adapting to the changing needs of its members & business landscape.”
Generator has committed occupancy levels approaching 80%, 1200 members, over 40 staff, an expanded footprint of about 12,600m², which includes 16 event & hospitality spaces and 40 meeting rooms, and it makes up about half the city’s co-working market.
Mr Pritchard said the 100% interest in Generator had created a unique proposition for Precinct: “We know there is an increasing demand in the market for businesses with fewer staff to have access to collaborative, flexible work environments that offer the high-end facilities that are typically reserved for large corporate office users.
“Generator gives us the opportunity to further expand our client base to cater for small & medium-sized enterprises, while still maintaining high-end solutions for large corporates, like at Commercial Bay.”
Long term, he said, Precinct would look to expand Generator’s presence in Auckland market and also take it to other city-centre markets.
Mr Pritchard said Mr Wilson & general manager Francesca Blomfield would step down, but Generator would maintain the rest of its current staff: “Leadership of the business will transition to members of the existing senior management team who have been integral to Generator’s growth over the past 2 years.”
Attribution: Precinct Properties.