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AMP Capital Investors retains major tenants
(June 2010)
AMP Capital Investors today announced the retention of three major tenants occupying 55 per cent of the AMP Centre at 50 Bridge Street in Sydney. This building is part of the AMP Capital Wholesale Office Fund portfolio, which is accessed through the AMP Capital Core Property Fund portfolio.
Baker & McKenzie, Bupa Australia Pty Limited (formerly MBF Australia Limited) and AMP Capital Investors have extended their tenure at 50 Bridge Street, with commitments extending individual expiry profiles by 5 to 10 years over a total of 31,000sqm. Through the retention of these tenancies and the recent addition of new tenant, Rothschild, the 56,000 square metre building will remain 100 per cent leased with an increased weighted average lease expiry from 3 to 5.4 years.
AMP Capital 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 per cent.
“We continue to maintain strong tenant retention rates across our portfolio, despite the relatively weak tenant market,” Mr Elliott said.
“The AMP Capital Wholesale Office Fund currently has a vacancy rate of 2 per cent, compared to the Australian Property Council of Australia reporting an average of 9.3 per cent 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.”
The AMP Centre is owned by the AMP Capital Wholesale Office Fund and the AMP Capital 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 135,000sqm of lease renewals as well as 45,000sqm of new leasing across their entire commercial property portfolio and have had no major tenants move out of the portfolio in the period.
Find out more about the AMP Capital Core Property Fund
Important note: Investors should consider the Product Disclosure Statement (PDS) available from AMP Capital Investors Limited [ABN 59 001 777 591] [AFSL 232497] for the AMP Capital Core Property Fund and AMP Capital Global Property Securities Fund before making any decision regarding these funds. The PDS contains important information about investing in the Funds and it is important that investors read the PDS before making any decision whether to acquire, or continue to hold, or dispose of any units in the Funds. Permanent Investment Management Limited [ABN 45 003 278 831] [AFSL 235150] is the responsible entity of the AMP Capital Core Property Fund and the issuer of units in the Fund. Permanent has not prepared this information and makes no representation or warranty as to the accuracy or completeness of any statement in it. To invest in the Fund, you and your clients will need the Fund’s current Product Disclosure Statement (PDS) issued by Permanent and available from AMP Capital on its website. The PDS contains important information about investing in the Fund and it’s important you and your clients read the PDS before making a decision about whether to acquire, continue to hold or dispose of units in the Fund. This information has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. You and your client should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs.
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