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  • Auckland Real Estate Trust (AKL) says that its workplace concept has been proven by its leasing performance over the last year
  • The company has secured 35 new leases across its portfolio since the start of COVID-19 and the opening of 1 Albert Streets lobby in January 2021
  • Flagship asset Alberts has 18 floors and 8500 square metres and AKL believes that as the works near completion, it will be fully leased in late August
  • Recently the company announced Damian Mathews as CEO and Kate Baguley as CFO
  • Auckland Real Estate Trust shares remain unchanged at 77 cents

ASX and NZX dual lister Auckland Real Estate Trust (AKL) has said leasing success over the past year has validated their workspace model.

The company announced it has secured 35 new leases across its portfolio since the start of COVID-19 and the opening of 1 Albert Streets lobby in January this year.

Regional offices of multinational corporations established small- and medium-sized enterprises, and professional service providers are among the new tenants with an average gross rent of $825sqm with a weighted average lease term of six years.

One Albert Street, the trust’s main property, has 18 floors and 8500 square metres of floor space, and AKL believes that as the works nears completion, it will be fully leased in late August.

Albert offers three workplace options, which includes classic office spaces and new workplace solutions driven by evolving tenant expectations, such as remote working, the company said.

Kylie Metzener, leasing manager at Alberts, said many organisations are searching for workspaces that will flex and grow with them as patterns of work continue to change.

“We know businesses want more flexibility from their spaces than in the past,” she said.

“This is to enable them to be nimbler in their day-to-day operation, and to take advantage of increased levels of collaboration between organisations, so our spaces must cater for it.”

ARE executive chairman Andrew Saunders said repositioning the properties to be presented in the Alberts flexible workspace model is all about understanding the target market.

“The high level of adoption by tenants of more flexible workspaces solution is not new, COVID-19 has speeded up an already emerging trend,” he said.

“When you see companies like BNZ locally, Atlassian and Google internationally all moving to versions of hub and node remote working, we as owners need to respond.

“Unfortunately, many owners are stuck in one mindset. For a forward-thinking, progressive owner such as ARE this is exciting, it also reminds us of the importance of ensuring we remain focused on understanding the needs of the tenant market.”

The Fusion Project, another big development for the company, which includes 87 Albert Street, 60 Federal Street, and 60 Kingston Street, will offer about 14,500 square metres of workplace and retail when completed.

The project has gained resource consent, and work on the lobby at 87 Albert Street and level nine workplaces has begun. The primary works are expected to begin in September 2021, with completion slated for late 2022.

Recently the company appointed Damian Mathews as CEO and Kate Baguley as CFO.

Auckland Real Estate Trust shares remain unchanged at 77 cents.

AKL by the numbers
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