Business centre opened to generate cash from vacant portfolio building
Commenting on the agreement, Matt Leach, Aviva Regional Offices Asset Manager said ‘NewFlex have impressed us with their track record of improving the cash generation from commercial office space. We have high hopes for this Business Centre and look forward to developing an expanded and long term working relationship with NewFlex.’
After an unsuccessful attempt to let the building on a conventional basis, Aviva widened the strategy to incorporate business centre use. NewFlex tabled a business centre proposal which demonstrated how a business centre strategy would enable the more active cost-conscious SME occupier market to be targeted as a means of generating income from the building. Aviva and NewFlex entered into an agreement which resulted in:
- Management Contract with Aviva
- 5-year management contract under which NewFlex undertook full responsibility for fit-out and day-to-day operation of the building and
- Successfully secured a 50% pre-let of the building on a 3-year term.
- Forecast returns will substantially exceed conventional leasing assumptions.
- 30,000 sq. ft.
- Management of entire building
Deal date – August 2012
