Kiwi Income Property Trust announces new lease

NZX RELEASE
31 August 2012

Kiwi Income Property Trust announces new lease with Bell Gully

Kiwi Income Properties Limited, as Manager of Kiwi Income Property Trust, is pleased to announce a new 12-year lease agreement with law firm Bell Gully for 6,514 sqm of space in the Trust’s flagship office asset, the Vero Centre in Auckland.

The new lease is for five and a half levels, representing approximately 16% of the building’s rentable area. The lease has a commencement date of 10 November 2012 and includes storage areas and associated car parking spaces in addition to the office areas.

Bell Gully has leased space in the Vero Centre since November 2000, originally occupying space over six and a half levels.

Chris Gudgeon, Chief Executive of the Manager of the Trust said, “Bell Gully’s commitment to the building for this extended term is testament to the quality of the Vero Centre. Bell Gully is one of New Zealand’s pre-eminent law firms and has been an important part of the business community within the building since its completion.”

As part of the new lease agreement, Bell Gully is modifying its workspace to deliver better efficiency and will release one floor from 10 November 2012. Half of this space has been leased to law firm Ellis Gould, who will occupy 597 sqm from December 2012 on a new nine-year lease.

The weighted average lease term to expiry for the Vero Centre will increase by 1.6 years to 5.5 years as a result of the new lease agreements.

The Trust will complete planned refurbishment works to Bell Gully’s premises, including carpet and bathroom upgrades, as part of the lease agreement.

Bell Gully Partner Jane Holland said: “We are delighted to have achieved this outcome. A new commitment to the Vero Centre, coupled with a refit of our floors, made complete sense for us. The Vero Centre continues to meet all of our expectations for a premium office tower.”

About Vero Centre

The Vero Centre is a 39-level office tower completed in 2000. It remains New Zealand’s premier business address, a benchmark for quality and is the Trust’s flagship office asset. The Vero Centre sits in the heart of Auckland’s legal and financial precinct and continues to attract many of New Zealand’s most respected companies. It has won numerous awards for excellence in design, construction and efficiency.

ENDS

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