Wellington's Bowen Campus development is moving forward with the announcement that work on stage two of the project set to begin in the coming weeks.

The project will be undertaken on a pre-committed basis with leasing to EY and Fujitsu secured totalling 4,093 square metres of office space on a weighted average lease term (WALT) of 9 years. 

At a glance: 

• Precinct Properties has announced that construction will soon begin on stage two of the Bowen Campus development.
• Comprising 10,049 square metres spread across six levels, the new building will be situated at 40 Bowen Street and will be the first of a pair of structures planned for the site. 
• The development project has an expected total project cost of $90.2 million and is expected to generate a yield on cost of 6.6 per cent, once fully leased. 

Comprising 10,049 square metres spread across six levels, the new building will be situated at 40 Bowen Street and will be the first of a pair of structures planned for the site. 

A Generator facility will also be provided over  the ground and first floor, comprising a meeting suite and private offices accommodating circa 300 desks, with EY committing to a portion of the Generator private office desks.

Source: Precinct Property

Pre- committed leasing currently represents 72 per cent of the building’s office NLA (net lettable area) by income. 

Precinct Chief Executive Scott Pritchard said being able to advance one of the two new office buildings at Bowen Campus was a great result amidst the challenging environment we have been presented with over the last few months. 

“Following the successful delivery of Bowen Campus Stage One, we are very pleased to be progressing the development of the second stage of Bowen Campus. 

"We believe the prime office market in Wellington remains strong and well positioned locally. 

"Having secured quality occupiers as pre-commitments reinforces the demand for quality office space in the Wellington city centre. 

Source: Precinct Property 

"With discussions currently underway with potential occupiers for the balance of space available, we expect the remaining 2,700 sqm to be fully leased prior to the project’s completion.” 

The development project has an expected total project cost of $90.2 million and is expected to generate a yield on cost of 6.6 per cent, once fully leased. 

Completion of the project is scheduled for late 2022. 

Mr Pritchard said while some uncertainty remained in the New Zealand economy, the company had every reason to feel positive about the future.

"Precinct’s well-located buildings, high-quality client base, high occupancy and long weighted average lease term give us confidence that our strategy will continue to deliver in more challenging times," he said.

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