KiwiRail signs record lease term at Central Park

3 December 2022   /   3 min read

Colliers has concluded its longest initial commercial lease agreement, with KiwiRail committing to a 25-year term in Auckland’s Central Park commercial precinct.

Owned by Oyster Property Group in partnership with KKR, the design and build deal was brokered by office leasing specialists Matt Lamb and Mike van der Putten of Colliers.

Construction has begun on the new purpose-built, stand-alone Rail Management Offices, which will occupy 3,358sq m of net lettable area. The building will house the Auckland Integrated Rail Management Centre, which will see all rail industry partners together under one roof, supporting the management of the growing rail network in Auckland.

Central Park is a 4.8ha site with more than 43,000sq m of commercial floor space near the Ellerslie train station and less than 10km from Auckland’s CBD via the Southern Motorway. Two adjoining residential developments highlight the mixed-used credentials of the precinct.

Lamb, Director of Office Leasing at Colliers, says Central Park has enjoyed growing popularity as a top-tier precinct and tenants are experiencing the benefits of highly committed landlords.

“Since acquiring the site in 2018, Oyster has transformed Central Park with extensive investment and upgrades to the amenities within the precinct including ‘The Green’ – a new hospitality hub,” Lamb says.

“We expect demand to continue to intensify as the site undergoes further planned office development.”

Central Park is home to more than 70 office tenants and existing occupiers include Restaurant Brands, Bunnings, Bidfood, Turners & Growers, Estée Lauder, and government agencies such as Waka Kotahi NZ Transport Agency.

Van der Putten, Director of Commercial Leasing at Colliers, says the flight to quality trend continues with tenants seeking high-quality workspaces and amenities outside of the CBD.

“Precincts like Central Park allow businesses and government agencies to better deliver on their environmental, social, and governance standards,” van der Putten says.

Built to a high-quality and resilient building standard, the bespoke ‘importance level 3’ (“IL3”) KiwiRail building will provide an outstanding facility to safeguard KiwiRail’s future operations.

Oyster Property Group CEO Mark Schiele says the firm is proud to partner with KiwiRail, Auckland Transport, Auckland One Rail, and Colliers on the delivery of this project, which will play an important role in providing quality public transport for the future of Auckland city.

“From day one, we have worked together to deliver a truly integrated approach and designed the building to meet the needs of KiwiRail to ensure the most efficient operation of Auckland’s rail network.”

KiwiRail’s Project Director – Control Systems Integration Carl Mills says the Auckland Integrated Rail Management Centre is crucial to delivering the rail services to support Auckland’s growth, and to providing lower-emissions transport for commuters.

“The centre is a considerable commitment of resources for KiwiRail, so we needed a lease with a term that reflected that.”

More Articles

Insights | 24 April, 2024

Where inflation goes, interest rates will follow, and asset markets will recover.

Kiwibank chief economist, Jarrod Kerr, provides the latest insights on the economic environment. Most central banks have faced the same problem, rapid inflation coming out of Covid. And most central banks responded...

Read More
News | 24 April, 2024

Meet Mat Harvie, Head of Investor Relations

Mat Harvie has joined Oyster as our Head of Investor Relations, bringing 14 years’ experience in property investor relations and banking to the role. Before joining Oyster, Mat was Head of Investor...

Read More
News | 14 March, 2024

Auckland Rail Operations Centre opening: a milestone for the region

Today marked a significant milestone for the growing Auckland region, with the blessing and opening of the Auckland Rail Operations Centre at Central Park. Delivered by KiwiRail and a joint venture between...

Read More