Precinct Properties presses ahead with central Wellington office development

5:12 pm on 4 June 2020

Precinct Properties is pressing ahead with the construction of stage two of its Bowen Campus office development in central Wellington.

An artist's impression of the Bowen Campus office development in central Wellington.

Photo: Screenshot / Precinct Properties Limited

The commercial property developer said it would build the first of two buildings at an estimated cost of $90.2 million, even though many office workers in the capital were opting to work from home.

Business consultancy EY and equipment and services supplier Fujitsu had committed to leasing 4093 square metres of the office space on a weighted average lease term of nine years, representing about 73 percent of lettable income from the building.

"With discussions currently under way with potential occupiers for the balance of space available, we expect the remaining 2700 sqm to be fully leased prior to the project's completion," Precinct chief executive Scott Pritchard said.

"While we recognise the uncertainty which remains within the New Zealand economy, Precinct's well located buildings, high quality client base, high occupancy and long weighted average lease term gives us confidence that our strategy will continue to deliver in more challenging times."

The company said the building, which was expected to be completed by late 2022, was expected to generate a yield on cost of 6.6 percent, once fully leased.

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