National Bank Extends Lease Commitment

ANZ National Bank Extends Lease Commitment In National Bank Centre

Kiwi Income Properties Limited, as Manager of Kiwi Income Property Trust, is pleased to announce that ANZ National Bank Limited (ANZ) has extended its office lease commitment in the National Bank Centre for a further lease term.

ANZ will continue to lease 10 office floors in the National Bank Centre, located at 205 Queen Street in Auckland, in a deal that retains their commitment to the building until at least the middle of 2013, and potentially out to 2017.

“ANZ is the largest tenant in the National Bank Centre and it is a good outcome for the Trust to have secured their commitment to a longer lease term,” said Chief Executive Chris Gudgeon.

The new six year lease will commence on 18 June 2011 for 5,846 sqm of office space, with 31 car parks. The lease contains a break provision, exercisable prior to 1 July 2010, which allows ANZ to surrender its lease prior to the end of the six year term, but no earlier than 30 June 2013. The rent payable to the Trust will be agreed on market terms at the start of the new lease, with a premium to allow for the break provision. The extended lease commitment increases the weighted average lease term for the building from 2.5 years to 3.0 years (or 3.8 years if ANZ do not exercise their surrender option). The new lease agreement does not include around 3,200 sqm of space in the building that ANZ has sublet to other tenants.

“We remain confident of retaining tenants within ANZ’s sublease space. To that end, we are pleased to have already secured a new 586 sqm lease agreement with Cathay Pacific on level 11,” said Mr Gudgeon.

Discussions about a potential lease extension are underway with ANZ in relation to National Bank’s 2,968 sqm retail tenancy on the ground floor of the building.

About National Bank Centre The National Bank Centre is located in the heart of the Auckland CBD at the corner of Queen and Victoria Streets. The property was completed in 1990. It comprises twin towers of 17 levels and 22 levels, with a recently refurbished podium lobby and basement carparking. The landmark property has a distinctive design and was recently awarded a 5 ‘Green Star’ office design rating from the New Zealand Green Building Council.

ENDS

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