2002 Media Releases

Deutsche Office Trust today announced the successful completion of lease negotiations with the NSW Government at Governor Macquarie Tower (GMT), 1 Farrer Place, Sydney.

The NSW Government has agreed to a new eight year lease for approximately 21,000 square metres of space. The lease is effective from 1 January 2007, and has been secured until 31 December 2014. The commencement rent will be determined by an effective market rent review at the time.

In addition, Deutsche Office Trust and its co-owner SAS Trustee Corporation have agreed to vary the NSW Government’s existing lease to facilitate their surrender of a ground floor retail space and levels 16 to 18, 19(part), 20 to 23 effective 30 June 2002. However, existing sub leases over levels 19 (part), 20, 21 and 23 will be assigned to the co-owners effective 1 July 2002. The NSW Government has agreed to pay to the co-owners a sum equal to seventeen months gross rent for the vacant space in consideration for both the handing back of 5,300 square metres and the assignment of the existing 4,200 square metres of sub leases.

“The new leasing arrangements are an excellent result for all parties. Through negotiations we have enabled the NSW Government to relinquish some vacant space recently made available within the tower whilst securing their tenancy for about 21,000 square metres for the next twelve years,” said Deutsche Office Trust’s General Manager, Michael Brown.

“Despite the generally soft leasing market for A and B grade office properties, premium office grade space in Sydney remains sought after with little vacancy in the landmark buildings,” said Michael Brown. “We would expect the space in Governor Macquarie Tower to be attractive to a number of smaller and mid size tenants over the next twelve to eighteen months.”

The parties agreed to set aside a dispute in relation to GST payable under the existing lease whilst completing the above transaction. “Hopefully, with the lease negotiations now resolved we can finalise this matter in the next two months,” said Michael Brown

For further information contact:

Michael Brown
Head of Listed Real Estate and
General Manager Deutsche Office Trust
Phone: (02) 9249 9346
Mobile: 0414 902 601

Kristin Silva/Ainsley Gee
Communications
Phone: (02) 9249 9568/(02) 9249 9904

About Deutsche Office Trust

Deutsche Office Trust is the largest listed office trust in Australia, and the seventh largest property trust listed on the Australian Stock Exchange. It assets are valued at approximately AUD$2 billion, which is expected to rise in excess of AUD$2.35 billion upon completion of a new premium office project in Perth and the new A-grade office project in Sydney. With investments in 16 properties across six of the country’s largest office markets (NSW, VIC, ACT and Perth), the Deutsche Office Trust invests in only premium, A and B grade office buildings.