Leasing and Development Update

1
11 February 2025

Leasing and Development Update
Argosy Property Limited (‘Argosy’ or ‘the Company’) has announced an update with respect to its
property portfolio, including two new quality tenants.
224 Neilson Street
Argosy has successfully secured a 12-year lease agreement with national business, Bascik Transport,
for 6,557 sqm, to commence in mid-April. The annual rental is $1.77 million (face rate $245psm). Rent
reviews are fixed, with a mid-term market review with a cap and collar of 15%. The building is on track
to achieve the targeted 6 Green Star Built rating and will feature 945kW Photo-Voltaic arrays (solar
power), enabling full site operation and truck charging.
Additionally, the large warehouse at 224A Neilson Street, comprising 15,300 sqm of NLA, is on track
for completion in August this year, with strong current leasing enquiry.
Mt Richmond
The first building at Mt Richmond has been committed with a new 10-year lease agreement with the
global healthcare company Viatris Ltd (with lease commencement in the first quarter of 2026). This
building includes 6,633 sqm of NLA and is also targeting a 6 Green Star Built rating. The annual rent is
$1.88 million (face rate $245psm), with fixed rent increases and a mid-term market review with a cap
and collar of 15%. Carr & Haslam, the current tenant, will continue to lease the remaining half of the
site.
The business park has strong metrics, including an IRR of 9.4%, a yield on cost of 6.2% and a
development margin of 18.7%.
Peter Mence said “It’s a pleasure to welcome such high quality tenants to the Argosy portfolio. This is
an excellent outcome, reflecting positive market sentiment at the start of the year. This achievement
underscores Argosy's strong market position and the growing demand for high-quality, sustainable
office/warehouse space. With both Bascik Transport and Viatris focused on sustainability in their
respective businesses, there is an excellent fit with Argosy’s focus on sustainable buildings.”
Other Recent Lease Transactions
Steel E.D. & Patton Limited, 39 Randwick Road, 2304m² on a new 11.6 year lease;
Lighthouse Financial Services, 23 Customs Street, 656m² on a new 5 year lease; and
Belton IT Nexus, 101 Carlton Gore Road, 500m² on a new 4 year lease.

END
Peter Mence
Chief Executive Officer
09 304 3411
pmence@argosy.co.nz
Dave Fraser
Chief Financial Officer
09 304 3400
dfraser@argosy.co.nz