Development of new office building for Auckland Council

NZX RELEASE

20 December 2019

Asset Plus announces development of a 15,100m
2
office building in Albany backed by a 15-year Agreement to
Develop and Lease with Auckland Council

Asset Plus (NZX:APL) today announces the entry into a conditional Agreement to Develop and Lease
(“Development Agreement”) with Auckland Council to construct a 26,675m
2
gross floor area and 15,100m
2
net
lettable area (NLA) office building with 212 carparks in Munroe Lane, Albany. Auckland Council will be the anchor
tenant for the new office building, agreeing to lease nearly two thirds of the total office NLA on a 15-year lease
from completion in December 2022. The Development Agreement is subject to normal conditions including
shareholder approvals, funding and resource consents which are expected to be satisfied in the first half of 2020.

Asset Plus Chairman, Bruce Cotterill said: “We are thrilled to announce the development of an iconic and
significant office building in Albany in collaboration with Auckland Council. This area has seen, and is expected to
continue to see, significant growth and development as a key node of North Auckland. Munroe Lane is in the very
heart of the Albany basin, within close proximity to local amenity including retail, food and beverage at the Albany
Lifestyle Centre and Westfield shopping mall, key transport links including the park-and-ride which will see
increased utilisation once the dedicated bus lane into Albany is completed, along with extensive leisure amenity
including the North Harbour stadium.”

In partnership with Auckland Council as anchor tenant, Asset Plus is committed to achieving both a 5-star
Greenstar design and build rating, and a 5-star NABERS rating for the development. Mr Cotterill said “We are
delighted to have partnered with Auckland Council to provide office accommodation for their council office hub in
Albany. Our common interests in creating a well located and sustainable building, adopting a collaborative and
partnership-based approach clearly resonated.”

Mark Francis, Managing Director of Augusta, the Manager of Asset Plus, commented: “The acquisition and
development of Munroe Lane is the second landmark acquisition for Asset Plus in 2019, building on the
momentum that has been gathering for Asset Plus recently. Asset Plus actively targets opportunities for value-
added investment in the property sector, with the Munroe Lane acquisition and development meeting all of our
key investment objectives.”

Key forecast metrics for the development include:
• The bare land at 6-8 Munroe Lane was acquired on the 2nd of December 2019 for $7.25 million.
• Development costs are estimated at $120 million.
• Construction is expected to commence in 2021, with a targeted completion date of December 2022.
Development will be overseen by Fund Manager, Augusta, and their specialist Development Team.
• Auckland Council have signed an initial 15-year lease with two 6-year rights of renewal over 63% of the
NLA.

With the committed development plan for Munroe Lane and the anticipated re-development of Graham Street in
the near term, Jarden has been appointed to arrange a potential capital raising. Asset Plus will update
shareholders on the details and timing of any capital raising and on the timing of the shareholder meeting to
approve the Munroe Lane development during the first quarter of 2020.

Further details on the development are contained in the attached presentation.

-ENDS-

For further information, contact:

Bruce Cotterill
Chairman, Asset Plus Limited
021 668 881

Mark Francis
Managing Director, Augusta
Funds Management Limited,
Manager of Asset Plus Limited
09 300 6161

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Munroe Lane, Agreement to Develop and Lease with Auckland Council | December 2019
Assetplus.co.nz
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MUNROE LANE

Munroe Lane, Agreement to Develop and Lease with Auckland Council | December 2019
Assetplusnz.co.nz
•A modern and sustainable campus-style office building in the key
growth node of North Auckland.
•63% pre-leased (by area) to Auckland Council on a 15-year lease from
completion.
•Total net lettable area of 15,100 m
2
.
•Development expected to commence early 2021, completion
December 2022. Resource Consent lodged December 2019.
•Project estimated to cost $127 million (including land).
•Expected yield on cost of approximately 5.8%.
Highlights
Auckland Council’s new home for its Albany office hub
63%
Pre-leased

Munroe Lane, Agreement to Develop and Lease with Auckland Council | December 2019
Assetplusnz.co.nz
•A transformative development migrating Asset Plus towards premier-
grade property.
•Bare land at 6-8 Munroe Lane was settled on 2 December 2019.
•Gross Floor Area of 26,675 m
2
and a Net Lettable Area of 15,100 m
2
.
•212 carparks.
•6 levels plus 1 basement carparking level.
•Floor plates of ~3,000 m
2
each.
•~300m
2
of expected Café / Food & Beverage / Retail outlets on
ground level.
•Excellent daylighting due to four street frontages (the development is
bordered by three roads and a lane-way).
Munroe Lane
Development Overview

Munroe Lane, Agreement to Develop and Lease with Auckland Council | December 2019
Assetplusnz.co.nz
•Close proximity to both Albany Heights
and Albany Lake Reserves.
•Direct access to State Highway 1.
•Minutes to the Albany Bus Station Park &
Ride.
•Highly visible and accessible site.
•Extensive local amenity including:
childcare, retail, Food & Beverage, leisure,
reserves and sport facilities.
Location & Amenity
Munroe Lane offers direct access to the
Northern Motorway, and proximity to
key Transport Networks.

Munroe Lane, Agreement to Develop and Lease with Auckland Council | December 2019
Assetplusnz.co.nz
Sustainability
Committed to minimising our
environmental footprint
•5-star Greenstar and 5-star NABERS ratings.
•Excellent daylight and external views.
•Effective solar gain control.
•Inter-connecting stairs promoting wellness.
•Integration of extensive end-of-trip facilities.
•Durable materials and low maintenance.
Level 6
Level 5
Level 4
Level 3
Level 2

Munroe Lane, Agreement to Develop and Lease with Auckland Council | December 2019
Assetplusnz.co.nz
Commercial overview of the Agreement to
Develop & Lease (ADL)
•ADL signed with Auckland Council today.
•Conditional on:
➢Shareholder approvals
➢Resource consent (lodged December 2019)
➢Funding
•Conditions are expected to all be satisfied during first
half of 2020.
•15-year lease commencing December 2022. Two
rights of renewal for a further 6 years each.
Commercial overview of ADL & Timetable
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Land acquired
ADL with Auckland Council Signed
ADL unconditional
Resource Consent
Shareholder vote
Funding
Construction tender
Construction works
Completion

Munroe Lane, Agreement to Develop and Lease with Auckland Council | December 2019
Assetplusnz.co.nz
Equity Raise anticipated during first half of 2020
•Jarden has been appointed to arrange a potential capital raising.
•Capital raising to consider near-term development intentions for both
Munroe Lane and Graham Street.
•Details and timing for capital raise and shareholder meeting to approve the
ADL will be provided during Q1 2020.
Funding & Shareholder Vote
Shifting into top gear
•Munroe Lane and Graham Street will significantly enhance the WALT and
quality of assets within the portfolio, reducing Asset Plus’risk profile.
•The equity raise will materially enhance Asset Plus’balance sheet and shares
on issue.
•The board hopes that these developments, coupled with the additional
equity, will also enhance Asset Plus’share liquidity and Price to NTA relative
to other listed REITs.