Kermadec says leasing deals increase occupancy

Thursday 3rd February 2011

Kermadec Property Fund said recent leasing deals will increase the occupancy level in its buildings from a low of 86 percent back up to 92% and will have a positive impact on earnings in the second half of the 2012 financial year.

The listed property fund made the comment in a presentation to investors organised by Forsyth Barr.

The fund has a new 12 year lease with a subsidiary of Woolworths Australia for a new 2100sq m Countdown Metro supermarket and a new eight year lease with a restaurant operator for a development covering 650sq m.

"2011 has started with a noticeable pick-up in leasing enquiry," the company said.

It still has $14 million of assets it regards as non-core, which it intends to divest in due course. The company's core property portfolio is worth $85 million.

Kermadec said the property market remains challenging, but the developments in the leasing market pointed to a recovery and it was widely accepted that property valuations were now at the bottom of the cycle.

NZPA

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