A more than $5million mall redevelopment in George St is well under way, with global shared business space company Regus targeting its opening in mid-January. More than $3million is being spent on construction at Mall 218, formerly the Harvest Court Mall, and a further $2million by Regus on the soft and hard fit-out of the office spaces. Regus country manager for New Zealand Pierre Ferrandon said Regus offered "service agreements" for business people with flexible space options ranging from open-plan space to booths, enclosed offices or boardrooms, including reception and in-house cafe. The completed 1100sq m space, formerly leased by Silver Fern Farms, will be designed around a "rustic-industrial" theme; exposing some of the building’s original structural timbers and brickwork, with total seating for up to 180 people. "The service agreement can be 30 minutes to three years. They can use whatever space they want and adapt it at any time," Mr Ferrandon said. Building owner Carl Angus has over the past decade invested about $10million into redeveloping Mall 218, and yesterday said the Regus project was the "final piece" of redevelopment. He said he was excited to be creating some "fresh options" for the city and its resident business community, plus attracting new businesses. Dunedin was short of quality office space and businesses increasingly valued flexibility, agility, and the ability to diversify to changes in the business environment, he said. "This is an A-grade space smack in the middle of town," Mr Angus said. While there were multiple space options, Mr Ferrandon said in Dunedin base membership would cost $149 per month, then range up to $540 per person for full-time occupation; which covered furniture, rent, IT, cleaning and electricity costs. Auckland and Wellington have respectively five and three Regus spaces, with another two each planned for Christchurch and Auckland. Regus was targeting eventually 60 spaces dotted around the country; the smallest being in townships of about 30,000, with about 5000 businesses so far on board, since arriving here in 2007, he said. "Our goal is to build a national network of flexible workspaces to enable people to work wherever, whenever and however they want," Mr Ferrandon said. The connectivity within Dunedin’s Gigatown status was also an attraction for overseas participating businesses, he said. Founded in Brussels in 1989, Regus parent company IWG is listed on the UK’s FTSE stock exchange, with annual turnover of £2billion ($NZ3.7billion) from operations in 120 countries, 900 cities and more than 3000 locations. Mr Ferrandon said many business people were not wanting to sign up to long-term leasing, noting business cycles were becoming shorter. Another issue for businesses was pending regulatory changes to accounting standards next year with leases becoming booked ahead as a liability, and asset, on the books. The Dunedin space would have two staff, plus an area manager for Otago and Southland, Aaron Kemp, with all IT and billing services centralised at one of three offshore locations, Mr Ferrandon said. "Typically, it’s expensive in New Zealand with costs of $1200 to $1700 per square metre to develop office space ... that could mean a lease commitment for at least five or six years," Mr Ferrandon said. "It’s ideal for business people who like not having a long-term [leasing] commitment; they can put that into other activities such as marketing," he said. Associate director of Colliers International in Dunedin Dean Collins said the Regus’ openingwas "a vote of confidence for the city’s future". "The city definitely needs the variety of flexible solutions Regus provides, especially for those businesses working in sectors such as creative industries, digital development, knowledge management and professional service," Mr Collins said. Regus would provide much-needed A-grade office space, which was in short supply, and would assist in attracting outside investment to Dunedin, Mr Collins said. simon.hartley@odt.co.nz
Office space provider Regus plans to open a “rustic-industrial” premises in a NZD$5m ($3.5m) development in Dunedin, New Zealand in mid-January 2018. Over $3m is being spent on the 1,100 sq metre Mall 218 development on George Street, with Regus contributing $2m to interior fit-outs. The office space available ranges from open-plan areas to enclosed offices, and the site includes a reception area and café. In addition to its retail operations, Regus’ new Dunedin location will also house an international food service company called Food & Wine that has been operating out of a former Woolworths store at Queen Street for several When finished, the site will be able to accommodate 180 people.