NZ Post pays $12m to amend lease with Argosy
The state-owned enterprise has signed a 10-year lease over all but the top three floors of the building.
New Zealand Post will pay $12 million to Argosy Property [NZX: ARG] after the state-owned mail delivery service's shrinking business meant it didn't need the top three floors of Wellington's NZ Post House.
The Wellington-based state-owned enterprise has signed a 10-year lease over all but the top three floors of the building, replacing what would have been a five-year tenancy agreement for the entire property, Argosy said in a statement. NZ Post's payment is made up of a $6 million charge for the termination of the lease of the top three floors, and a $6 million reduction on the $60 million sale of the building to Argosy in 2013.
"The remaining upgrade work to the building has been revised as a result of NZ Post's changed accommodation requirements," Argosy said. "Given the strength of the current market, we don't expect that the period to re-lease this space will be prolonged."
Last November Argosy said its $40 million upgrade on the building had stalled due to NZ Post's reduced need for floor space, and the property investor today said it has signed a new $13 million agreement with Hawkins Construction NI to improve lifts, stairwells, toilets and other associated services.
Argosy's shares fell 0.8% to $1.175 and have gained 3.5% this year.
(BusinessDesk)
Edwin Mitson
Fri, 08 Apr 2016
Fri, 08 Apr 2016
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NZ Post pays $12m to amend lease with Argosy
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