Eight lease renewals in eight weeks for ANZO

Eight lease renewals in eight weeks for ANZO

AMP NZ Office Trust (ANZO), New Zealand’s largest listed investor in prime commercial office property, has secured a series of lease renewals with blue-chip tenants, covering more than 23,000 sqm of space across 25 floors in properties in Auckland and Wellington, over the past eight weeks.

ANZO chief executive Robert Lang said the eight tenants contributed a total of $7.92 million in rentals each year. Significantly, all are continuing to occupy the same amount of space.

“Remaining in their current premises has become a logical choice for many CBD office tenants in the current economic environment,” said Mr Lang. “By staying put, they avoid a range of costs associated with a move to new premises – fitout costs, IT costs, relocation costs, and business disruption.

“However, it comes down to individual circumstances – organisations whose space no longer matches their staff levels, or provides inadequate profile, will still find value in moving to new premises.”

He added that some major overseas office markets were seeing organisations which had been occupying secondary-quality space moving to more prestigious premises at a time when market rentals were lower.

Mr Lang said the recent transactions in ANZO’s portfolio were indicative of a return to active engagement by occupiers and a willingness to make accommodation decisions, which is encouraging for the portfolio and market generally.

The renewals are:
AXA Centre, Wellington
• AXA has renewed all six of its levels, totalling more than 4,700 sqm
• NZ Fire Service has renewed its one-and-a-half levels (1,131 sqm)
Vodafone on the Quay, Wellington
• Naming rights tenant Vodafone has renewed its floor of approximately 1,000 sqm
• Microsoft has also renewed (670 sqm)
State Insurance Tower, Wellington
• Insurance company IAG has renewed all five-and-a-half of its floors (5,567 sqm)
• The Bank of New Zealand has renewed its four part-levels (2,150 sqm)
• Property agency DTZ has renewed its floor (1,048 sqm)
ANZ Centre, Auckland
• ANZ Bank has renewed all six of its levels, totalling more than 6,000 sqm.

Mr Lang added that there had been additional, smaller renewals and new leases.
ANZO’s full-year result for the year to 30 June 2009 is scheduled to be announced on August 13.

ANZO is managed by AMP Haumi Management Limited.

About ANZO
ANZO is New Zealand’s largest listed investor in prime and A-grade commercial office property. A unit trust listed on the New Zealand Exchange, ANZO currently owns 15 New Zealand office buildings with a total gross value of more than $1.3 billion – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House, AMP Centre and 21 Queen Street; and Wellington’s State Insurance Tower, Vodafone on the Quay, HP Tower, 125 The Terrace, No. 1 and 3 The Terrace, Pastoral House, Mayfair House, AXA Centre, Deloitte House and 29 Willis Street (Chews Lane).

ENDS

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