By leveraging its active asset and property management capabilities, intricate market knowledge and extensive tenant relationships, Investa has been able to deliver outperformance for IOF.

Brisbane portfolio largely de-risked, 31,482sqm leased, occupancy 90%

    Brisbane Results

  • 90% occupancy
    across the
  • 85% Retention
    over 41 lease
  • 9% Valuation
    uplift due to
    strong leasing

Specialist leasing capability and strong reach into the commercial tenant market delivers value for IOF.

Investa's active approach to leasing delivered strong results in Brisbane during FY16, providing stability of earnings and addressing near term, residual vacancy risk in the Brisbane market.

By fostering long term relationships with our tenants, and the skills and experience of the entire Investa business, IOF achieved 31,482sqm of value accretive leasing.

  • Despite subdued market conditions, the continued appetite for well located, affordable, A grade accommodation positioned IOF assets well this year
  • Strong expansions in government requirements, coupled with good relationships and Investa's ability to align available space with tenant needs, meant the Investa team secured a number of government departments across the Brisbane portfolio
  • An increasing volume of smaller tenant moves along with consolidation into the CBD futher strengthened performance, particularly in the goverment, legal and financial services sectors
    • 24,000sqm of leasing achieved at 140 Creek Street and 295 Ann Street - both now 95% leased
    • 3,790sqm of leasing at 239 George Street, including 14 tenant renewals

Active asset management has added value to the Melbourne portfolio

    Melbourne Results

  • 63,400 sqm Leased to telstra
  • 100% occupancy
  • 15 years Weighted
    average lease

63,400sqm, 11.5 year lease to Telstra at 242 Exhibition Street, Melbourne, delivers income stability and secures the long-term value of IOF's largest asset.

Investa's strong, long-team relationship with Telstra, coupled with its ability to offer a space solution that was both competitive and flexible, enabled a new, long term lease to be secured well ahead of expiry.

Investa's deep understanding of Telstra's Future Ways of Working model and ability to negotiate mutually beneficial terms, means the building will remain as Telstra's flagship premises in Melbourne. IOF has committed to spend ~$30m (IOF share) to upgrade building amenity and servies, allowing Telstra to showcase its services and technology and future proofing the asset for IOF.

  • 11.5 year lease extension to October 2031
  • Reinforces the building as a global business hub for Telstra
  • Delivers long term income stream for 242 Exhibition Street
  • Underpins future valuations

"Being a specialist in the commercial office sector means we have an intimate understanding of the market and the subsequent deamnd and supply dynamics driving tenant decisions. We're able to leverage this knowledge, along with our strong relationships, to attract and retain quality tenants, optimising occupancy in our buildings."

Nicole Quagliata
Assistant Fund Manager, IOF

Investa commits to setting a science based target

IOF is preparing for the global transition to a low carbon economy by committing to reduce the carbon intensity of its portfolio.

Science Based Carbon Reduction Targets are a framework supported by the Carbon Disclosure Project, the UN Global Compact, WWF and the world Resources Institute.

Targets adopted by companies to reduce Green House Gas (GHG) emissions are considered "science-based" if they are in line with the level of decarbonisation required to keep global temperature increases below 2oc compared to pre-industrial temperatures, as described in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change.

As an example, one of IOF's flagship assets, 126 Phillip Street, Sydney has achieved a 12% reduction in electricity use when compared to the previous 12 month. As a result, the asset's carbon footprint has shrunk, with the building emitting ~430 less tonnes of GHG emissions during FY16.

  • 29% Reduction
    in Carbon emissions
    intensity since 2011
  • Investa is the 1st Australian
    Property company
    to commit to
    setting carbon

Professor Richard de Dear, Director of the IEQ L, The University of Sydney and Shaun Condon, General Manager, Safety and Environment, Investa
Image credits Daniel Munoz, Fairfax Syndication

New technology to track indoor climate

In June this year, Investa announced the launch of SAMBA (Sentient Ambient Monitoring of Buildings in Australia) in partnership with The University of Sydney's Indoor Environmental Quality (IEQ) Lab. This ground-breaking technology will enable Investa to track indoor climate within IOF buildings and optimise the productivity of tenants.

Built on revolutionary sensor technology, SAMBA was developed to capture a range of parameters, including air temperature, radiant heat, air movement, humidity, light, sound, carbon dioxide, and carbon monoxide, along with various pollutants emitted from building materials, such as volatile organic compounds.

Investa's cornerstone research partnership is currently being trialled at 126 Phillip Street in Sydney, and will be rolled out to other buildings as more units become available.