JLL assists ARE in $58m CBD office transaction
Working with JLL, ARE has consolidated three office buildings to revolutionise Auckland’s office offering.
JLL New Zealand is proud to have assisted Auckland Real Estate Trust (ARE) in their latest property venture in the City of Sails.
JLL Senior Director John Binning worked with ARE to advise on and secure the purchase of 60 Federal Street and 16 Kingston Street, two properties that adjoin ARE’s existing asset at 87 Albert Street.
The overall investment came to $58 million and now consolidates three strategic properties that will form a new 14,500sqm A-Grade office complex in the core of Auckland’s CBD, adjacent to the new Aotea CRL station and Sky City.
With the office complex branded as ‘Fusion’, ARE is integrating 87 Albert Street, 60 Federal Street, and 16 Kingston Street with a new three-level link building creating a modern urban office complex designed to support new ways of working that is anchored at the ground level with one of Auckland’s premier restaurants.
Resource consent has been granted and works have commenced on the Fusion project with a forecast cost of around $25 million that is expected to be complete within the next 18 months.
Andrew Saunders, the Executive Chairman of ARE says Fusion is the first major A-Grade office complex to be developed in this exciting part of the city, which is being revitalised by significant infrastructure investment and new developments.
“We are excited by the successful evolution of our model and the Fusion project is another positive step in developing our portfolio with the objective of providing businesses with modern, post-Covid workspaces,” says Saunders.
“Fusion is another key step in establishing a leading Auckland focussed office portfolio. The location, on Albert Street and next to both SkyCity and the Aotea train station that is expected to be Auckland’s busiest transport hub upon completion, continues the investment strategy executed successfully at 1 Albert Street.”
Binning says ARE is leading the way in investing in a new and exciting offering that is already receiving significant demand from forward-thinking occupiers.
“It is broadly understood that the work-life changes propelled by COVID-19 lockdowns won’t diminish the need for offices. However, our latest research shows that there is an ongoing flight to quality trend that is seeing vacancy in prime offices actually declining while vacancy in secondary or older offices continues to rise as occupiers demand more from landlords with new and modern ways of working,” says Binning.
“ARE’s investment strategy to target value-add assets that are well located with significant vacancy due to neglect or age is a sound one, as these older offices in the CBD that are left untouched can provide rich pickings for investors as many of them are suited to repositioning to deliver growth.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.