This article is from the Australian Property Journal archive
AMP Capital Investors has renewed four major leases at its AMP Centre at 50 Bridge Street in Sydney.
AMP extended the lease to three tenants, Baker & McKenzie, Bupa Australia Pty Limited (formerly MBF Australia Limited) and AMP Capital Investors, with commitments extending individual expiry profiles by 5 to 10 years over a total of 31,000 sqm.
The three existing tenants represent 55% of the building.
AMP has also secured new tenant, Rothschild bringing the occupancy rate at the 56,000 sqm building to 100% with an increased weighted average lease expiry from 3 to 5.4 years.
AMP Wholesale Office fund manager Henry Elliott said this result was particularly pleasing given the January 2010 Property Council of Australia Office Market Report stating that Sydney CBD vacancy levels have risen to 8%.
“We continue to maintain strong tenant retention rates across our portfolio, despite the relatively weak tenant market.
“The AMP Capital Wholesale Office Fund currently has a vacancy rate of 2%, compared to the Australian Property Council of Australia reporting an average of 9.3% across the country.
“We’ve been working with our tenants to manage their requirements and business needs while continuing to maintain sustainability initiatives and quality services within our buildings,” he added.
The AMP Centre is owned by the AMP Capital Wholesale Office Fund and the Australian Core Property Portfolio.
The AMP Capital Wholesale Office Fund is an open-ended unlisted trust investing in high-quality office buildings. The Fund has gross assets of $2.4 billion as at 31 March 2010.
Since the beginning of 2009, AMP Capital Investors’ Office & Industrial team have concluded 135,000 sqm of lease renewals as well as 45,000 sqm of new leasing across their entire commercial property portfolio and have had no major tenants move out of the portfolio in the period.
Australian Property Journal
