Eden Office Park sold in big Australian portfolio exchange
Elevated view of the Eden Business Park on the corner of Normanby Rd and Enfield St in the Auckland city fringe precinct.
Auckland’s Eden Business Office Park, on the corner of Normanby Rd and Enfield St in the Mt Eden city fringe precinct, has been sold as a part of a five property asset portfolio sale by Melbourne based Arena Investment Management to Sydney based Anton Capital for a combined net price of AU$249.3 million (NZ$262,937,000).
In addition to Eden Business Park the four properties involved in the portfolio sale were: Victoria Police Centre in Melbourne; Customs House in Fremantle; 1-3 Smail Street, Ultimo and 235 Pyrmont Street, Pyrmont both in Sydney.
The deal, in which the individual sale value of the five properties was not disclosed, is expected to be finalised by the end of the month.
Nick Hargreaves, managing director for JLL and Auckland colleague John Binning, launched an international marketing campaign for the sale of Eden Business Park in September last year and managed the divestment process on behalf of Arena in New Zealand.
“Eden Business Park received strong interest from prospective domestic and international purchasers and inquiries indicated an appetite for good New Zealand property assets,” Hargreaves says.
“The transaction took advantage of the significant international capital flows coming into Australia and New Zealand and the sale delivered the best outcome for Arena investors on a favourable local market.”
The sale of Eden Business Park encompasses four freehold office buildings, designated Eden 1, 3, 4 and 5. They amount to a combined total of 19,032 sq m net lettable area with 702 car parking spaces and were constructed in the last 12 years with most recent works completed 2007. The property generates a gross annual income of about $5.9 million with operating expenses of around $1.6 million. Three of the buildings are interconnected.
Also included in the sale were two strata titled office units and a standalone car park building. The complex is multi-leased to major tenants including the Ministry of Education, Herzon, Teletech, Banklink, Cognition and Citrix Systems.
Hargreaves says Eden Business Park has been progressively developed since 1999 with the most recent works completed in 2007.
“The four buildings sold provide well specified, modern, suburban low-rise office accommodation,” he says.
“They also benefits from two development sites known as Eden 6 and 7 which are currently used for additional car parking and allow for future expansion and intensification of the property,” he says. Another building within the office park and designated Eden 2 was not included in the current sale.
Hargreaves says recent upgrading work in the complex has been completed with office areas now meeting 100 per cent of the seismic code.
“Eden Business Park is now moving to full occupation with a number of new tenancies in progress,” he says.
Hargreaves says the value of Eden Business Park will be significantly enhanced by the realisation of Auckland Council and government plans to build a 3.5 km underground rail link that will connect Auckland’s western rail line to the CBD via an underground tunnel/
A link created just after Mount Eden Station will result in the current 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,” Hargreaves says.
He says 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 $2.4 billion rail link proposal is expected to result in a doubling the population within 30 minutes train distance of the CBD.”