This article is from the Australian Property Journal archive
Nestlé has signed for a further ten year term at Rhodes, which include minimum rental increases of 3.5% per annum. The deal was completed almost three years in advance of lease expiry.
The 5 level office building covers 17,000 sqm of space as well as 375 car spaces, and will continue to operate as Nestle’s Oceania regional headquarters.
Australand’s investment property general manager Rob Wallace said the lease was one of the largest suburban office deals in the past year.
“Nestle is a long term and valued client of our business and with a forecast shortage of supply on the horizon it was in both our interests to renegotiate ahead of time.
“We have improved the lease expiry profile on our portfolio and improved asset value and our tenant has surety over their business premises,” he added.
Commencing in 2013, the renewed lease contributes to strong portfolio metrics and improves the Australand portfolio’s weighted average lease expiry to 5.3 years.
Australian Property Journal
