AMEX secured as sole commercial tenant in Atrium development
Charter Hall Group and AMP Capital Investors, through their jointly managed opportunity fund, Property Development Portfolio No.2 ('PDP No.2') is pleased to announce the signing of American Express International Inc ('AMEX') to a 12 year lease over the entire 16,828m² of commercial office space at its Atrium development at 60 Union Street, Pyrmont.
This significant leasing deal is in addition to the Agreement for Lease signed with Coles at the outset of this project for a 20 year lease over a 2,500m² full range supermarket and LiquorLand, leaving only 400m² of remaining retail area to lease.
Charter Hall Joint Chief Executive Officer, David Southon said that this significant leasing deal supports the view that the Sydney Office Market is continuing to tighten for corporations requiring high quality, contiguous office space.
'We are very pleased to have concluded this leasing deal with a strong corporate such as AMEX well ahead of the building's completion, which is scheduled for September next year. It further demonstrates the confidence that large corporates have in Charter Hall's ability to deliver high quality properties to satisfy the next generation of tenants' occupancy needs. AMEX has embraced a collaborative delivery process that will ensure a seamless, integrated fitout, saving them both cost and time,' said Mr Southon.
'This deal also represents an excellent result for PDP No.2 unitholders and the Charter Hall Group. It is the final project in PDP No.2, which is now expected to return in excess of 25% pa (pre-performance fees) for its unitholders over the life of the Fund. Such a result further reinforces Charter Hall's position as the pre-eminent manager of wholesale opportunity funds in the Australian Market. It also assists in underpinning the Group's future development revenue and growth prospects', he said.
Charter Hall remains on track to deliver its FY06 forecast. This project will crystallise a performance fee to Charter Hall upon sale of the asset.