KPG
02/06/2015 14:32
GENERAL
NOT PRICE SENSITIVE
REL: 1432 HRS Kiwi Property Group Limited
GENERAL: KPG: New Crown leases secured at 44 The Terrace
Kiwi Property's office building at 44 The Terrace in Wellington will receive
a $12.6 million upgrade, after the Company secured three new 12-year Crown
lease agreements over 84% of the building's office area.
The lease agreements over 10 of the building's 12 floors of office
accommodation, or 8,059 sqm of space, are with the Tertiary Education
Commission, the Commerce Commission and the Energy Efficiency and
Conservation Authority.
Chris Gudgeon, Chief Executive, said: "Taken together with our 24,000 sqm
lease agreement with the Ministry of Social Development at 56 The Terrace, we
have now concluded leases with the New Zealand Government for over 32,000 sqm
of office space in adjacent buildings. These two buildings are being
comprehensively upgraded and will become a strong government office precinct
conveniently located close to parliament at the northern end of The Terrace."
The development works at 44 The Terrace will include refurbishment of base
building finishes, upgrading of building services and structural
strengthening to 80% of New Building Standard. The new lease agreements
provide a 23% uplift on existing rental levels commencing on completion of
staged floor refurbishments.
The refurbishment works are due to commence in June 2015, with tenants
remaining in occupation during the progressive works programme thereby
avoiding any rental downtime.
44 The Terrace is currently valued at $23.5 million and is projected to have
a value on completion of $38.5 million.
> Ends
Contact us for further information
Chris Gudgeon
Chief Executive
[email protected]
+64 9 359 4011
mobile +64 21 855 907
Mathew Chandler
Investor Relations and Communications Manager
[email protected]
+61 458 110 042
About us
Kiwi Property (NZX: KPG) is the largest listed property company on the New
Zealand Stock Exchange and is a member of the NZX15 Index. We've been around
for more than 20 years and we proudly own and manage a $2.28 billion
portfolio of real estate, comprising some of New Zealand's best shopping
centres and prime office buildings. Our objective is to provide investors
with a reliable investment in New Zealand property by targeting superior
risk-adjusted returns over time through the ownership and active management
of a diversified, high-quality portfolio. To find out more, visit our
website kp.co.nz
End CA:00265116 For:KPG Type:GENERAL Time:2015-06-02 14:32:28
