Leasing momentum at Millennium25 July 2023 / 3 min read
It’s been a busy year at the Millennium Centre business park, with strong leasing momentum contributing to a 1.87 per cent uplift in valuation – no mean feat given the impact current economic conditions are having on commercial property valuations both in New Zealand and globally.
Helping to drive these leasing results is Lauren Valcarcel, Asset Manager for the Millennium Centre. With 10 years of property sector experience, Lauren has a wealth of knowledge when it comes to active asset management, and proven experience in delivering great outcomes for both investors and tenants.
We sat down with Lauren to discuss the elements driving this exciting leasing story for the Millennium Centre.
Genuine, long-term partnerships with tenants translate into investor value. This underpins everything we do when it comes to the management of the Millennium Centre.
Since the Centre became a part of the Oyster portfolio in 2017, the Oyster team has driven a programme of continuous improvement to modernise and increase amenities for tenants, including new end-of-trip facilities, the repositioning of its retail strip, the newly installed turf on the tennis court and the installation of communal social facilities, including BBQs.
“We’ve created a real community feel for the businesses that occupy the Centre and this creates a significant point of difference,” Lauren says.
“We’re completely hands on at the Millennium Centre. Our property and facilities managers are based on site to support our tenants and provide prompt assistance when required. Our active engagement in the leasing market helps us proactively stay ahead and maximise opportunities for investors.”
A focus on leasing over the last 18 months has delivered significant results.
“We’ve seen the Millennium Centre reach 97% occupancy,” Lauren says, “which is a great result for a 43,000 square-metre asset.
“Our close working relationships have positioned us well to proactively meet the needs of our tenants and pivot when required to make the Centre work for them. We are in front of them before they go to market, and you can see the benefits of this in long-term tenant retention and rental growth.”
Key leasing highlights for the Millennium Centre over the past 12 months include a new nine-year lease with Toyota Finance – a deal that required Oyster to coordinate the movement of another tenant to accommodate Toyota’s need for additional space.
Green Cross Health has signed on for another nine years at the property, which will take their total tenure to 19 years. The centre’s ability to accommodate significant parking requirements for Green Cross has been a key driver of this long term leasing arrangement – parking is an amenity that can be difficult to find in central Auckland.
Z Energy, who have occupied the asset since 2009, have agreed to another six-year lease term, representing a net rental uplift of 18 per cent, and including a more favourable annual rental increase structure. This excellent outcome for investors was supported by a proactive strategy to ensure the Centre continues to meet the needs of Z Energy and was competitive from a market perspective.
Looking ahead, Oyster’s priorities for the Millennium Centre are maintaining leasing momentum, careful cost management, and ultimately, growing investor distributions.
I’m excited to continue to play a hands-on role in ensuring the Millennium Centre will always attract quality tenants, and deliver results for investors.