Trans Tasman Properties fills its Auckland Club Tower fast

Friday 8th June 2001

FILLING UP: Trans Tasman Properties has leased six of the buildings nine floors over the past four months

By Campbell McIlroy

Trans Tasman Properties has been leasing up a storm in the Auckland Club Tower following the departure of anchor tenant Bell Gully.

Chief operating officer Bruce Catley said Trans Tasman Properties had successfully leased six of the building's nine floors, all on six-year leases.

When Bell Gully moved out in January it still had four months until its lease expired in May.

In that time Trans Tasman Properties has managed to sign Dialogic to three floors, Owlcentral to one floor, a group of three smaller tenants made up of lawyers and financiers to another floor; and is finalising a lease with a small legal firm for another floor.

Mr Catley said the net effective rentals ranged from $205-220 a sq m.

"It's still a tough leasing market but it's good to be able to get the space away quickly. There is a sign of some tenants taking the opportunity to upgrade from C grade to B grade offices," he said.

While the battle for tenants has become incredibly competitive, Mr Catley said the average level of incentives for the building would have been in the region of 12 months rent free.

He said the company would have the rest of the space leased within the next four to five months as there were two or three parties looking at the remaining space.

Trans Tasman Properties may also be looking for a new home itself soon as it has leased its space in the Citibank Centre on Custom Street East to quantity surveyors Davis Langdon for six years.

Meanwhile, the company announced it received final orders from the High Court approving the capital reorganisation of its convertible capital notes.

Despite the capital reorganisation of Trans Tasman Properties' shares being rejected the convertible capital notes arrangement was passed by a majority of 75% at a special meeting held on May 21.

Trading and quotation of the convertible capital notes will cease at 5pm Friday, June 22, and the notes will be cancelled on Wednesday, June 27.

The bonds will then be issued on Thursday, June 28, to all note holders on the register as at 5pm Wednesday, June 27.

Trans Tasman Properties has made an application to the Stock Exchange for the bonds to be quoted and traded through the exchange.

The last note interest payment will be made on Wednesday, June 27.

Interest payments will be made quarterly in arrears with the first interest payment due on Friday, September 27.

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