Eden Business Park within New Zealand’s Mt Eden city fringe office precinct is the subject of a major JLL marketing campaign that closes on Friday, October 10th. Nick Hargreaves, Managing Director of JLL New Zealand, has been appointed to sell buildings within the complex in conjunction with JLL agent John Binning and Chris Key, Head of Corporate Finance of JLL Australia.
The sale encompasses four freehold office buildings; Eden 1, 3, 4 and 5 – three of which are interconnected. It also includes two strata titled office units and a standalone car park building.
The four buildings have a total net lettable area of 19,032.056 sq m and 702 car parks. They earn gross annual rent of approximately NZ$5.9 million with operating expenses of around NZ$1.6 million. The complex is multi-leased to major tenants including the Ministry of Education, Herzon, Teletech, Banklink, Cognition and Citrix Systems.
Hargreaves says, “We expect the sale of buildings within Eden Business Park to attract overseas investors seeking a modern, well-specified office development. The property could be subdivided as the vendor has established a number of separate titles across it.”
Hargreaves continues, “Any transaction of properties in this portfolio is also likely to take advantage of the significant international capital flows that we are seeing come into both Australia and New Zealand. International capital flows have seen more than double digit growth since 2012 and quality product such as the Eden Quarter is in the sweet spot for these large scale institutional investors.”
Key likewise says he expects “There will be interest from several global fund managers and investors recognising the strategic appeal of the opportunity”.
Justin Kean, National Director of Research for JLL, concurs saying, “Significant buyer appetite for larger portfolio assets is extending from Australia towards New Zealand as a result of New Zealand’s growth proposition and yield differential on prime assets,” Kean says.
JLL predict the value of the business park will be significantly enhanced by government plans to build a 3.5 km underground rail link which will connect Auckland’s western rail line to the CBD via an underground tunnel. Kean says, “A link will be created just after Mount Eden Station resulting in the trip from Mt Eden to the city’s Britomart Transport Centre taking less than six minutes instead of the current 16 minutes. Additionally the proposed works will make the Mount Eden station a transport hub for a wide range of public transport solutions increasing the general connectivity of the area.”
Kean continues, “Infrastructure improvements are proven to have a significant impact on property values in the areas where they are located and Mt Eden will be no exception. The new city rail link will increase the profile of the area, significantly improve connectivity and improve the appeal of Mt Eden to large tenants wanting to connect to the CBD but not be located within it.”
Additionally the NZ$2.4 billion rail link proposal is expected to result in a doubling of the population within 30 minutes train distance of the CBD.
Eden Business Park is one of nine investment grade assets being divested through JLL by Arena Investment Management Limited, one of Australia’s leading property funds managers.