Significant lease secured with ASB

Significant lease secured with ASB at 33 Corinthian Drive

The new ASB lease at 33 Corinthian Drive is a major milestone for Oyster in 2024, marking the largest leasing deal by net lettable area in New Zealand to-date.

Secured in a challenging market, this agreement highlights the enduring demand for premium, well-located assets, the importance of strong landlord-tenant relationships, and the value of future-fit properties in attracting long-term commitments.

Strategic retention delivering long-term certainty

In 2023, with its lease expiration approaching in 2025, ASB began exploring potential relocation options. The Oyster Properties team took a proactive approach, negotiating a two-year lease extension, and providing a four-year runway to develop a long-term solution that would meet the needs of both parties.

Subsequent discussions focused on ASB’s operational priorities and shared sustainability goals, culminating in a new 9-year lease – securing an additional six years of tenure and providing long-term certainty for both the tenant and our investors.

For investors, the lease agreement is a strong outcome, delivering a significant uplift in rental income. Together with the extended lease term and a planned program of capital improvements, the deal is also expected to drive a material increase in the property’s valuation.

Investing in the future

The lease agreement includes significant capital investment to enhance building performance and sustainability. Key upgrades include:

• Upgraded HVAC systems: Improving energy efficiency and enhancing occupant comfort.
• Comprehensive LED lighting: Reducing energy consumption throughout the property.
• Sustainability target: Aim for a NABERSNZ rating greater than 4.5 stars upon completion of upgrades with the potential for further initiatives to increase the performance of the asset.
• Technology integration: In partnership, Oyster and ASB are looking to implement the Tether platform to monitor and improve operational and sustainability performance at the property.

A partnership underscored by shared sustainability goals

The agreement also reflects the alignment between ASB’s sustainable financing priorities and Oyster’s commitment to improving sustainability performance at 33 Corinthian Drive and across its portfolio.

While ASB was not the existing funder of the asset, alongside the long-term lease agreement, they have now become the Scheme’s long-term financing partner.

The new funding arrangement offers competitive margins and incorporates sustainability-linked incentives, reinforcing the partnership’s shared focus on environmental performance.