ING Office Fund has ended a mixed year on a high by leasing more than 27,000 sqm in Australian held office investments in the final quarter.
ING Office also leased some 37,000 sq ft of space in its 900 Third Avenue New York office tower.
The deals take the portfolio to 99% leased and brings in an extra $8 million of income into the fund.
According to ING Office Fund Tino Tanfara the successful leasing of vacant space at 900 Third Avenue, New York, utilising the local management team reinforces the benefits of the property’s prominent location and its ability to attract tenants.
He says management has also proactively resolved one of the Fund’s major lease expiries for the 2005 year in Cheltenham, Victoria, a year before lease expiry, ensuring minimal and manageable lease expiries and predictable earnings through to 2006.
The major suburban leasing deal in Victorian involves the Becton developed 1230 Nepean Hwy, Cheltenham, which was formerly leased by the Australian Taxation Office.
The City of Kingston has taken the whole 11,373 sqm of the building on a 10 year lease with two further options of 10 years at $180 psm.
The lease begins in November 2004.
“The Fund’s earnings are well shielded from recent interest rate and currency movements, with AUD debt 87% hedged and USD debt 98% hedged over the medium term. In addition, the Fund’s income from the US has been hedged for the next 4.8 years at a fixed forward exchange rate, with the capital investment naturally hedged by the use of USD debt,” he says.
