Big Pinky Benefits From Active Lease Management
The AMP NZ Office Trust announced today that it had leased a further three floors of NZI House (formerly 151 Queen Street) out to 2008, improving the weighted average lease term of the building.
"We are delighted to have secured international insurance broking giant, Marsh, as tenants for NZI House, following a competitive tender process," said Anthony Beverley, Executive Manager of the AMP NZ Office Trust.
The award wining building, nicked named "Big Pinky" because of its distinctive colouring and striking architecture, is recognised as one of the country's top buildings. It is one of six premium properties in the AMP NZ Office Trust portfolio of commercial CBD properties in Auckland and Wellington.
The lease is for nine years, concluding on 30 June 2008, for levels 18, 19 and 20.
"Together with the recent decision by NZI to lease six floors in the building, today's announcement extends the weighted average lease term of NZI House from 4.18 years to 5.18 years. This demonstrates the ability of the AMP NZ Office Trust's active lease management approach to improve the lease structure of a property investment and hence its value," said Mr Beverley.
Securing a top tenant like Marsh for NZI House in a very competitive market confirms our belief in the ability of prime office buildings to attract superior tenants and provide a strong return over time."
Over the last six months the AMP NZ Office Trust has been successful in securing new leases or extending existing leases out to 2008 and 2009 for nine of the 19 office levels of NZI House.
Previously, international insurance brokers Sedgwick occupied three floors in the building, subleasing out a floor to smaller tenants. As a result of the international merger between the Marsh McLennan group of companies and Sedgwick group, the newly merged organisation, Marsh, sought to combine its Auckland operations under one roof and held a competitive tender, which resulted in the selection of three floors of NZI House. The organisation wanted to secure a long term tenure in a quality building, centrally located in the CBD.
AMP NZ Office Trust is New Zealand's largest
commercial CBD property investor, managing property
investments worth $486 million. Ends