New Auckland leases improve cashflows and occupancy for AMP NZ Office TrustApril 27, 2004 AMP NZ Office Trust (ANZO) has confirmed that Air New Zealand – its sixth-biggest tenant by income – has extended its lease for two years. Air New Zealand occupies the top five levels, a total of 5521 sqm, in Auckland’s Quay Tower and also holds signage rights for the building. ANZO executive manager Rob Lang said the lease extension until February 2007 provides ANZO with certainty of income and maintains the building’s occupancy level at 97.2 percent. Mr Lang said Air New Zealand is currently reviewing its long-term accommodation objectives and ANZO has expressed its willingness to further assist Air New Zealand wherever possible. Elsewhere in ANZO’s Auckland portfolio, Mr Lang said two new tenants have been secured for IAG House, lifting occupancy in that building from 88.22 percent to 94.14 percent. The new tenants, which have taken up large parts of levels 24 and 25 (a total of 915 sqm), include Mayne Wetherell, the new boutique finance law firm launched by former partners in Russell McVeagh. “Two significant head leases in IAG House expired in September last year,” said Mr Lang. “However, ANZO has made excellent progress in retaining the existing sub-tenants and attracting new tenants, at rental levels which have been higher than the projections in our business plan. “The terms of the new leases, at eight and 12 years, are very respectable and there are no rent-free periods involved, which is confirmation that incentives are working their way out of the market and tenants are becoming more sophisticated in assessing their total cost of occupancy. “The key indicators in Auckland continue to be positive for ANZO as an investor at the top end of the office property market,” said Mr Lang. AMP NZ Office Trust (ANZO) is a unit trust listed on the New Zealand Exchange, which invests predominantly in prime and A-Grade CBD office properties in major New Zealand cities. ANZO currently owns eight New Zealand office buildings with a total value of more than NZ$600 million – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House and Quay Tower; and Wellington’s HP Tower, 125 The Terrace, No. 1 and 3 The Terrace and Pastoral House. ANZO is managed by AMP Ronin Management Limited. Media enquiries: |