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News Release

Auckland

Eden Business Park sells in Arena portfolio

Auckland’s landmark office development Eden Business Park has changed hands as part of a five property asset portfolio owned by Arena Investment Management (Arena).


 

 

Significant piece of industrial land for sale /new-zealand/en-gb/news/848/significant-piece-of-industrial-land-for-saleChristchurchSignificant piece of industrial land for sale
Historic West Coast Hotel for sale/new-zealand/en-gb/news/849/historic-west-coast-hotel-for-saleChristchurchHistoric West Coast Hotel for sale

​​JLL facilitated the sale on behalf of Arena who has exchanged contracts with Anton Capital for a combined net price of AUD249.3 million. The sale incorporates five properties, Eden Business Park and four other Australian property assets which are scheduled for settlement late January 2015. 

​Managing the divestment process on behalf of Arena in New Zealand was Nick Hargreaves, Managing Director for JLL who commenced an international campaign for Eden Business Park in September last year.

“Eden Quarter received strong interest from domestic and international purchasers indicating their appetite for good product and recognising the strategic appeal of the portfolio opportunity. This transaction takes advantage of the significant international capital flows coming into Australia and New Zealand and delivers the best outcome for Arena investors as markets conditions remain favourable” says Hargreaves.  

Justin Kean, Director of Research for JLL says, “JLL has seen the continued deployment of global and international capital into property since the GFC. Through 2014 this ramped up considerably and heading into 2015 we would expect this trend to show few signs of slowing down. This transaction however foreshadows increasing levels of sophistication and structuring, of which we have seen little in the New Zealand market to date.”

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 sqm net lettable area with 702 car parking spaces and were constructed in the last 12 years with most recent works completed 2007. They generate a gross annual income of about $5.9 million with operating expenses of around $1.6 million. Three of the buildings are interconnected and also included in the sale was 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.  

David Ross, Chairman of Arena, said “the sale of the residual direct property assets in the Arena Property Fund (APF) and Arena Office Fund (AOF) will be the culmination of a 3 year turnaround program implemented by Arena that has delivered strong returns to investors within both the APF and AOF, and which will lead to a full liquidity event in accordance with the December 2011 strategy plan.”
 
JLL acted as exclusive Corporate Advisers to Arena and undertook an international Expressions of Interest campaign that covered a range of alternative transaction structures in order to identify the optimal liquidity outcome to Arena’s investors in both APF and AOF. JLL marketed the assets for sale individually, as a portfolio, the opportunity to recapitalise the Arena funds, and the potential to also acquire Arena’s investment management platform. 

Arena, as responsible entity of the Arena Property Fund (APF) and Arena Office Fund (AOF), has exchanged contracts with Anton Capital to divest five property assets comprising;
- Victoria Police Centre in Melbourne (AOF);
- 1-3 Smail Street, Ultimo in Sydney (APF);
- 235 Pyrmont Street, Pyrmont in Sydney (AOF);
- Customs House in Fremantle (APF); and 
- Eden Business Park in Auckland (AOF).

Anton Capital acted on behalf of one of its global institutional clients in the transaction. Anton Capital is an investment and advisory group specialising in private equity and special-situation investing opportunities. In conjunction with select capital partners, Anton Capital has developed an impressive track record in securing strategic investments, with an ongoing investment appetite through active capital partnerships.