Kiwi Income Property Trust has entered into a conditional development agreement with ASB Bank to develop a new head office premises in Wynyard Quarter on the Auckland waterfront.
The agreement involves ASB taking an 18 year lease for 18,000 square metres of office space.
The agreement provides for the trust receiving an initial net rental yield of 8.78% on the $121 million development cost, plus annual increases.
Construction is expected to commence by mid 2011 and be completed by July 2013.
The trust's portfolio already includes 17 office buildings and the Sylvia Park and Northlands shopping centres.