The Majestic Centre tower seismic strengthening completes

NZX RELEASE
7 March 2017
The Majestic Centre tower seismic strengthening
project completes


Kiwi Property is pleased to advise that the seismic strengthening works at The Majestic Centre
tower have completed, with new lease agreements highlighting the strength of tenant demand
for buildings rated ‘low risk’ for seismic performance.
Chris Gudgeon, Chief Executive, said: “This has been one of the most complex seismic
strengthening programmes ever undertaken in New Zealand, with our programme of works
undertaken in stages over a 4.5-year period to keep the building operational throughout.
“From the outset, we received strong support from our tenants and, since works began, we have
undertaken leasing deals equivalent to 93% of the building’s office area. As a result, the building
has a weighted average lease term of 6.7 years – which shows tremendous support for the
outcomes we have been able to achieve at The Majestic Centre,” said Mr Gudgeon.
The project reached practical completion on 31 January 2017, with the tower now achieving a
performance-rating equivalent to 100% of New Building Standards (NBS)
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.
“Since the Canterbury earthquakes in 2010 and 2011, and the subsequent Wellington and
Kaikoura earthquakes, we have witnessed a surge in tenant demand for buildings that are highly
rated for seismic performance,” said Mr Gudgeon.
The Earthquake Commission has been a long-standing tenant within The Majestic Centre and
recommitted to a new lease in the building during the seismic upgrade project.
Hugh Cowan, General Manager Reinsurance, Research and Education, Earthquake Commission,
said: “Since the Canterbury earthquakes, Kiwi Property has displayed integrity and leadership in
understanding earthquake building risk and overcoming the technical challenges to reduce it.
They proactively engaged everyone in the building – openly sharing their understanding of the
situation and what they planned to do to fix it.
“Naturally, undertaking a project of such scale and complexity in a fully tenanted site at times
involved additional challenges, but the outcome today exemplifies what can be achieved by a
determined building owner employing the right expertise and with the goodwill of many parties.
The strengthening of The Majestic Centre is a world-class example of what can be done to
improve the seismic performance of buildings while keeping them operational.”
Michael Holloway, GM Commercial, said: “We have been fielding increasing tenant inquiry from
Wellington office tenants who recognise the strength of the tower and the quality of the building.
“Today, we are pleased to announce that we have secured a further tenancy agreement for a
new nine-year lease over 1,021 sqm of space, commencing in May 2017,” Mr Holloway said,
noting that seismic performance was a strong motivator for the new tenant to move to The
Majestic Centre.
Kiwi Property also recently reached agreement with Summerset Group Holdings Limited for a new
12-year lease to accommodate their growth requirements, increasing their premises by 782 sqm
to 1,803 sqm progressively from April 2017.

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The 100% NBS performance rating, provided by Holmes Consulting LP, has been based on a performance
based assessment to ASCE-41 performance objectives at Life Safety and Collapse Prevention limit states for
100% and 150% earthquake load levels to NZS1170.5:2004 (New Zealand Loadings Standard) respectively.

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Key tenants within The Majestic Centre include:
> Airways Corporation
> Cigna
> Earthquake Commission
> Ernst & Young
> Government of Japan
> NZTA
> NZ Trade and Enterprise
> Opus
> Summerset Group
> Taipei Economic and Cultural Office
> Training Rooms Wellington
About The Majestic Centre
One of Wellington’s most recognisable office towers, The Majestic Centre offers 21 levels of A-
grade office accommodation for high-quality tenants from the public and private sectors.
Kiwi Property’s market leading commitment to strengthening works has resulted in the building
now being recognised as one of the most attractive office accommodation options for tenants in
the Wellington market.
Providing context to the scale of the strengthening works involved, Kiwi Property’s contractor
Fletcher Building poured 1,300 cubic metres of concrete, installed 1,325 tonnes of structural steel,
laid 53.2 kilometres of post-tensioning strand and inserted 53,500 bolts and anchors. During the
project’s peak construction period, construction crews worked in two shifts covering 21 hours a
day, seven days a week. The strengthening project has cost in excess of $83 million.
In 2013, while the seismic upgrade was in progress, earthquakes in Cook Strait produced
moderate shaking in Wellington, which was recorded on a GeoNet array of sensors installed in
The Majestic Centre for research purposes several years earlier. The measurements of the shaking
gave added confidence to continued occupancy of the tower, and also provided a timely
cross-check and validation of design assumptions for The Majestic Centre upgrade.
At completion of the seismic strengthening upgrade, 97% of the building’s net lettable area
achieves a performance-rating equivalent to 100% of NBS.
The upper part of the main entrance atrium is rated at 85% NBS. Two small tenancies outside the
tower, comprising 3% of the net lettable area, are rated at 40% NBS and may be strengthened in
future.

> Ends

Contact us for further information
Chris Gudgeon
Chief Executive
chris.gudgeon@kp.co.nz
+64 9 359 4011
mobile +64 21 855 907
Mathew Chandler
Investor Relations and Communications Manager
mathew@acumentum.com.au
+61 458 110 042
direct +61 2 9519 5850

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About us
Kiwi Property (NZX: KPG) is the largest listed property company on the New Zealand Stock
Exchange and is a member of the NZX15 Index. We’ve been around for more than 20 years
and we proudly own and manage a $2.9 billion portfolio of real estate, comprising some of New
Zealand’s best shopping centres and prime office buildings. Our objective is to provide investors
with a reliable investment in New Zealand property by targeting superior risk-adjusted returns
over time through the ownership and active management of a diversified, high-quality portfolio.
Kiwi Property is licensed under the Real Estate Agents Act 2008. To find out more, visit our
website kp.co.nz