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Meridian sells for $26.7m

By Chris Hutching

Friday 17th October 2003

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Manson Developments has sold its most recently completed office development, the 9200sq m Meridian Centre in Greenlane, for $26.7 million.

The property comprises two adjoining office buildings. One sold for $13.526 million and the other for $13.2 million. Bayleys Waikato found buyers for the buildings, which were sold to separate buyers at yields of 9%.

One of the buildings is fully leased to Fonterra subsidiary Mainland Products and the Ministry of Social Development, on seven and nine year leases respectively. The adjoining building is occupied by the Department for Courts, the Electrotechnology Industry Training Organisation, another government organisation, and Avanti Finance, which all have new nine-year leases. Avanti also has naming rights over the centre.

About 500sq m remains to be leased and is under negotiation. Manson Developments has underwritten the rental on this space as part of the sale agreement. The centre has more than 300 carparks, which are leased at $20-25 a week.

The Meridian Centre, on Main Highway between the Ellerslie/Penrose and Greenlane motorway interchanges, was completed in late 2002 and came on to the market largely vacant but Manson Developments' Culum Manson said businesses have been quick to commit to the new space, reflecting the high level of demand for quality office space in the southern corridor.

Occupancy costs for the 1200sq m office floors are lower than in the central city, with rentals for the building set at $215/sq m.

Operating expenses, including rates, are approximately $48/sq m, which Mr Manson said was about half of what was typically charged in the CBD.

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