Oyster plans to add value in Greenlane
Oyster Group plans to fill the vacancies at the $209 million Central Park Corporate Centre in Auckland and increase its value with more development.
The commercial property and funds manager is part of a joint venture with international investment firm KKR that settled the purchase of the business park in Greenlane, about 6 kilometres from central Auckland.
Oyster Group chief executive Mark Schiele said Central Park needed ‘‘active management’’.
The buildings in the southern part of the business park were about 20 per cent vacant and some of the older ones were developed in the late 1980s.
Central Park was bought from Goodman Property Trust. It comprised 11 commercial buildings and two standalone car parks.
The joint venture would not syndicate the business park as it had done with the Millennium Centre, another business park in Greenlane it bought 18 months ago. The Millennium Centre had 96 per cent occupancy when it was bought and syndicated.
Schiele said commercial property was ‘‘at 12 o’clock’’, or the top of the cycle. The company expected it to ease off at some stage but there was still strong tenant demand.
The acquisition was consistent with Oyster’s strategy of partnering with other investors and employing its property management skills. ‘‘We believe the Greenlane area offers great investment returns for the future, which is why we see Central Park as a real opportunity.’’
The business park had good amenities for large and small firms, including being close to the motorway, train station and childcare facilities. The northern section comprised newer buildings and was ‘‘essentially full’’.
Schiele said land in the business park next to the railway line was suitable for development. It was currently used for parking.
Central Park spans a 6-hectare site and is home to more than 60 businesses and 2100 employees. The total net lettable area was about 44,000 square metres.
Key tenants included Genesis Energy, Restaurant Brands, Youi, Mars, Toshiba, George Weston Foods, the Department of Corrections and Salmat.
With the addition of Central Park, Oyster’s property assets under management came to more than $1.4 billion.