Dexus yet to meet leasing target at 1 Bligh Street
Successful negotiations of a fresh lease agreement would allow Dexus to achieve its target of leasing more than 80% of its 1 Bligh Street, Sydney office building by June 2012, the property group has revealed in interim results.
Dexus says 1 Bligh Street is currently 68% leased by area, with law firm Clayton Utz and the Commonwealth Government the major tenants.
Dexus says it is currently in exclusive negotiations for a further four floors of the six-green-star premium office building, which would take occupancy in the building to 82%.
In November it was reported that business information provider Bloomberg was considering moving into the flagship office tower.
The property group announced net profit attributable to stapled security holders after tax of $145.7 million for the six months ended December 31, 2011
Dexus chief executive Victor Hoog Antink says the results are in line with guidance and underpinned by like-for-like net operating income growth of 2.4%.
“Our focus on leasing has seen us already secure more than 99% of 2012 financial year rental revenue,” he says.
Dexus secured lease renewals over 19,572 square metres in the half-year period, 91% of which were leases expiring in future periods. During the period 6,712 square metres of new leases were signed.
In October, Merrill Lynch analyst Simon Garing forecast it would take at least four years to fully lease 1 Bligh Street.
The building at 1 Bligh Street has won numerous architectural, design and sustainability awards since being completed earlier this year.
