Funds & Trusts

LEASing

New leases concluded for the first six months of FY2012 totalled 53,019sqm. By 15 March 2012, heads of agreement had been signed for a further 31,934sqm. Leasing activity across the Fund has been strong with terms agreed for a combined total of 84,953sqm over 11 transactions which equates to over 20% of portfolio NLA.

This significant new leasing performance was focussed on the large vacancies since 30 June 2011 and addressed the majority of the 22% lease expiry for FY2012. This successful leasing activity increased portfolio occupancy to 95.8% from 91.0% in September 2010. Weighted average lease expiry (WALE) has increased to 4.0 years from 3.1 years over the same period.

Major leasing transactions completed during the Half Year to 31 December 2011 are shown below:

• New seven year lease to AWH over 44,296sqm at Spearwood Avenue, Bibra Lake, WA
• New four year lease to Hazstore over 3,901sqm at Warehouse 2, Marple Avenue, Villawood, NSW
• New seven year lease to Wallara over 3,188sqm at the recently completed Building 9, 102-108 Bridge Road, Keysborough, VIC; and
• New five year lease to House of Hope over 1,044sqm at 243 Shellharbour Road, Kemblawarra, NSW

In addition to leases executed above, the following terms have been agreed for:

• Lease extension for Dana until May 2013 over 10,070sqm at 39-45 Wedgewood Rd, Hallam, VIC
• New two year lease to GM Holden over 15,333sqm at 14 Dansu Court, Hallam, VIC
• New three year lease to Slattery Auctions over 5,609sqm at warehouse 1, Marple Avenue, Villawood, NSW

Major new vacancies post 31 December 2012 are MCK Pacific’s lease over 11,018sqm at 223-235 Barry Road, Campbellfield which expires in March 2012. The tenant has confirmed they will vacate and the property has been placed on the market for sale or lease.

The other major ongoing vacancy is 4,075sqm at 243 Shellharbour Road, Kemblawarra. One unit of 1,044 has been leased over the period leaving two out of the five units vacant. This property is not located in an established industrial market and has therefore received limited leasing interest. The Fund is looking to dispose this asset to avoid ongoing property income risk and a public sale campaign was undertaken in December with no immediate result. Leasing campaigns continue with multiple agents on each vacancy to attract new tenants.

 

 

 

Portfolio Lease Expiry

by Gross Income (%)

 

 

 

 

 

 

 

 

 

 

 

 

 

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