Firms play hopscotch on Wellington leases

By Suzanne Green

Friday 3rd September 2004

One of New Zealand's largest travel companies, Flight Centre (NZ), is relocating part of its Wellington operation to Gen-i Tower, Featherston St.

From this month its corporate division will occupy 550sq m on the top floor (level 12) on a six-year lease.

The deal involved a three-way negotiation between NZI, which vacated ahead of its lease expiry, Flight Centre and the AMP Property Portfolio.

Already one of AMP's Auckland tenants, the company was keen to find Flight Centre accommodation in the capital, AMP portfolio manager, office and industrial, Brent Buchanan said.

"Given that our Wellington office portfolio had been 100% occupied and the Wellington leasing market is generally tight, this was an excellent outcome for all three parties."

Level 12 had been leased by NZI in 2002 for six years. When it sought to surrender it four years early, AMP lined up Flight Centre to replace it.

"A surrender sum was paid by NZI to AMP but the amount remains confidential," Buchanan said.

"However, it more than covered any costs that AMP incurred in the transaction."

Flight Centre was paying a rental of $230sq m gross. This represented a 10% uplift in that previously paid by NZI, he said.

Flight Centre's general manager, corporate division, David Burns said the new premises allowed several teams to work together in a good location.

Gen-I Tower offered an open working environment and was handy to public transport and other amenities.

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