Partnering with tenants for shared success

Close partnerships with tenants form a fundamental part of Oyster’s strategy to deliver enduring value for investors. We are proud to house some of New Zealand’s most high-profile organisations within our portfolio.

Over the last 12 months, our Property Team has successfully navigated long-term lease renewals, implemented asset enhancements, and worked with our tenants to achieve their sustainability goals. Here are some recent highlights of our partnerships with IRD and KiwiRail.

Cementing a long-term future with IRD

A sizeable lease renewal was a milestone for the IRD and Oyster teams to celebrate in 2023.

Twelve months ago, our Asset Management Team and IRD began lease renewal discussions. IRD was keen to remain at Jepsen Grove in Wellington’s Upper Hutt, however, doing so would require enhancements to the property to ensure it could meet the needs of IRD and its people in the long term.

Maximising what was already a trusted and practical commercial relationship, Oyster and IRD worked together to agree terms and a programme of works to deliver on this.

As a result, what was meant to be a three-year lease renewal was extended to nine years in total, an excellent result providing increased certainty for both the tenant, and Oyster’s investors.

In 2024, work will commence to build a new carpark with EV charging facilities to provide increased security and amenities to IRD employees.

Internal lighting will also be upgraded to LEDs to support the buildings NABERSNZ rating and Oyster’s sustainability inititiaves along with IRD’s government mandated sustainability requirements.

Alongside these landlord-led enhancements, IRD is also investing in additional upgrades to the internal fitout to meet their growing operational needs.

KiwiRail team on track to move in

The KiwiRail and Oyster teams have a lot to be excited about heading in to 2024, with KiwiRail’s purpose-built Integrated Rail Management Centre at Auckland’s Central Park set for occupation from March.

Following the signing of the Development Agreement and lease in December 2021, committing to a 25-year lease term, it has been a busy 12 months of progress on the new stand-alone office facility, underpinned by a truly collaborative tenant-landlord partnership with KiwiRail.

2023 saw the delivery of the integrated design and build project, which extends from base build to the internal fit-out.

Working hand in hand, KiwiRail and Oyster have designed the building to meet the needs of KiwiRail and its people and the bespoke ‘importance level 3’ (‘IL3’) KiwiRail building will provide an outstanding facility to safeguard KiwiRail’s future operations.

With construction and building commissioning now complete, the Oyster team worked closely with KiwiRail to ensure the project was delivered on time in readiness for City Rail Link testing.

Oyster now transitions into a hands-on, on-site property management role, ensuring KiwiRail and it’s operational rail services partners enjoy their new home.

Read more about this project and Oyster’s integrated development model from Oyster’s Development Manager Mark Hitchcock here.