AMP's Scott Pritchard says leasing documents now demand building quality details. Photo / Paul Estcourt
AMP's Scott Pritchard says leasing documents now demand building quality details. Photo / Paul Estcourt
Shareholders in $1.2 billion landlord AMP NZ Office heard yesterday how their buildings had strong seismic ratings which nervous Wellington office workers were demanding after the Christchurch disaster.
Scott Pritchard, chief executive, told the company's annual meeting at Auckland's Stamford Plaza how leasing documents demanded building quality details on earthquakerisk.
"In Wellington, the tragic events in Christchurch have had a profound effect in bringing about a heightened new focus on building structural integrity. Although the probability of a major earthquake has not altered, occupiers have become acutely aware of earthquake performance issues. Many Wellington occupiers now require their office accommodation to meet at least 67 per cent of the building code and in some cases beyond 100 per cent.
"This change in demand effectively leaves a portion of Wellington's office buildings out of contention as far as these occupiers are concerned," Pritchard told shareholders.
AMP has 14 Wellington buildings of which eight have been built to 100 per cent of code, two are 90-100 per cent and four are 75-90 per cent.
"These scores demonstrate the quality of the portfolio," Pritchard said.
Rising insurance premiums are being offloaded on tenants.
"Insurance premiums have increased by around $4 per square metre. All our Auckland leases and around 50 per cent of our Wellington leases are net leases. So the impact on operating profit will be limited due to the majority of increases being borne by clients," Pritchard said.
