CHARTER HALL OFFICE REIT RE-SIGNS TELSTRA AT THE ARGUS CENTRE, MELBOURNE
Thursday, 23 September 2010
Charter Hall Office REIT (ASX: CQO) today announced that Telstra has extended its existing leases at the Argus Centre, 300 LaTrobe Street, Melbourne while building refurbishment works are undertaken and on completion, will enter into a new 12 year lease from 1 January 2013.
The lease agreement will see Telstra recommit to 23,482 square metres on levels 17 to 34, over 70% of the building, increasing the buildings weighted average lease expiry (WALE) from 0.4 years to 10.5 years. The lease extension increases the Australian portfolios WALE from 3.7 years to 4.4 years.
In partnership with Telstra, Charter Hall Office REIT will undertake a comprehensive refurbishment of the Telstra floors and the base building services, including lifts, air conditioning and building automation systems. The refurbishment will achieve a 4.5 NABERS Energy rating, in line with both Charter Hall and Telstras commitment to sustainability.
Mr Adrian Taylor, Chief Executive Officer of Charter Hall Office REIT, said: The extension of the Telstra lease at the Argus Centre reinforces the depth and strength in Charter Hall and the REITs long-standing relationship with Telstra; which lease approximately 70,000 square metres of office space across the Charter Hall managed funds portfolio.
Telstra has been the major tenant in the Argus Centre for 15 years and we are delighted to not only be extending their tenancy but to also be undertaking the refurbishment of the building in partnership with them. This is in line with our strategy of prudently investing capital into our existing properties to grow income and increase capital values, Mr Taylor added.
Argus Centre is one of the REITs flagship assets and is 100% leased. This lease represented the REITs single largest lease expiry for the 2011 financial year across its entire portfolio.
Lease expiries for the Australian portfolio over this financial year now represent only 6% of net lettable area allowing the team to focus on leasing up available space and working with existing tenants to renew leases well ahead of expiry.
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