Investa Office Fund (ASX: IOF) today announces three new leases across 13,639sqm in IOF’s Perth portfolio, including a 10 year lease extension over 11,973sqm to the Commonwealth of Australia which occupy all of 836 Wellington Street, Perth.
The renewal at 836 Wellington Street, Perth commences 1 February 2017 and extends the asset’s weighted average lease expiry (WALE) from 2.8 years as at 30 June 2016 to over 10 years. The property is one of two assets IOF owns in Perth and represents 51% of IOF’s Perth portfolio.
Two new leases have also been agreed at 66 St Georges Terrace, Perth, comprising a five year lease across 1,007sqm to The Returned Services League of Australia, commencing in November 2016, and a one year lease extension across 659sqm to SAI Global from August 2017. As a result, the asset’s occupancy has increased from 61% to 68%.
The successful leasing outcomes in Perth will result in IOF’s Perth portfolio WALE increasing from 2.9 years to 7.7 years with occupancy moving from 79% to 83%.
Fund Manager, Penny Ransom said, “Delivering a 10 year renewal in Perth is a great achievement in what remains a challenging market and reflects the strength of the relationships cultivated by the Investa platform. This lease secures a long term income stream to a high quality tenant and significantly reduces the risk profile of our Perth portfolio.”