THE AMP Capital Investors managed Property For Industry, New Zealand’s only listed company specialising in industrial property, has booked an occupancy rate of 99.2% despite the slowing economy.
PFI’s general manager Ross Blackmore said strong leasing enquiries resulted in nine new tenants covering a total of more than 22,000 sqm.
Demand was solid across the board, ranging from 1,000 sqm tenancies through to an 11,000 sqm sub-leasing at one of the company’s largest distribution centres.
“Despite the slowing economy, leasing enquiry remains strong in the PFI portfolio and in the industrial precincts where our properties are located.
“Generally, two signs of a softer leasing market are shorter lease terms and an increase in tenant incentives, and we have not seen a noticeable change in either in the company’s leasing transactions so far this year,” he added.
The company conducted 19 rent reviews adding $NZ465,000 to the its annual rent roll. Of the 28 remaining reviews, Blackmore said 10 are on CPI or stepped mechanisms, and are likely to add approximately $NZ150,000 more to PFI’s annual rent roll.
The rent reviews completed to date have resulted in an average compound increase of 2.93% per annum over the 2.8-year weighted average review periods.
Looking ahead, Blackmore said there was good tenant interest in new PFI projects as well as the company’s existing buildings.
He said the company was confident of another design-build project announcement over the coming months.
PFI is managed by AMP Capital Investors and its portfolio of 58 properties now has a total gross value of $NZ426.747 million.
Australian Property Journal