ISPT and NAB agree new 12 year lease

Tuesday, 1 July 2008

Industry Superannuation Property Trust

The 500 Bourke Street office building in Melbourne will become Australia's leading example of high rise CBD sustainable refurbishment under a partnership unveiled today between building owner Industry Superannuation Property Trust (ISPT) and tenant National Australia Bank (nab).

The announcement coincides with nab signing a new 12 year lease with ISPT for its 47,000 square metre headquarters at 500 Bourke Street. The bank has occupied the entire 37 storey building, which currently accommodates more than 3,000 people, for nearly 30 years.

The refurbishment plans will see 500 Bourke Street become Australia's first example of a concurrent refurbishment of both a base building and fit out, with the project to incorporate a series of environmentally sustainable development principles.

ISPT Chief Executive Officer, Mr Daryl Browning, said ISPT is committed to environmental sustainability with corporate policy aimed at achieving a minimum 5 star Green Star rating on all office refurbishments.

"ISPT is setting an example in sustainability in a significant building where the tenant also appreciates and endorses the goal. ISPT and nab's collaborative effort to complete an integrated solution on this scale demonstrates the strong relationship between the two parties," Mr Browning said.

Mr Simon Le Gear, nab's General Manager, Property, Procurement and Environmental Operations said a review recommended continued occupation of the Bourke Street building as a core component of nab's commercial property portfolio.

"Maintaining this address provides nab with an opportunity to retain a high profile within the Melbourne CBD," he said.

Mr Browning added that the industry had given a lot of attention to improving the sustainability of new buildings and comparatively less to upgrading existing stock.

"The huge amount of CBD stock now moving into the refurbishment stage of its lifecycle dictates a new focus," said Mr Browning.

"There are billions of dollars in technology and energy already invested in existing stock. We need to exhaust the physical assets and make sure only the absolute redundant stock goes out of the system," said Mr Browning.

In line with nab's pledge to be carbon neutral by 2010, nab is committed to achieving a minimum 4 star Green Star rating, and is looking at every opportunity to attain a 5 Star Green Star rating for all commercial tenancy refurbishments, including 500 Bourke Street. Environmental design consultants have been engaged to assist with the design.

The two year refurbishment program started in December 2007 and is expected to be completed at end of 2009. Sustainability objectives include improving energy and water efficiency, indoor environment quality and resource efficiency over the life of the building. Bovis Lend Lease is project managing the design and construction, John Wardle Architects the ground plane architecture and Peddle Thorp Interior Design the office tower refurbishment.

For further information:

Daryl Browning CEO, ISPT (03) 8601 6666

Trudy Wise Wise McBaron Communication (02) 9279 4770 / 0418 220028

Kerrina Lawrence NAB (03) 8641 3409 / 0417 034 738

About ISPT:

Established in 1994, ISPT is a uniquely structured independent organisation owned by its investors, major industry superannuation investment funds. ISPT invests the retirement savings of more than 40 per cent of Australian workers.

The organisation is a special purpose vehicle for superannuation funds to invest in direct property on a low cost basis. ISPT has total funds under management exceeding A$8 billion, diversified across five funds: its Australian focused ISPT Core Fund (incorporating Industry Superannuation Property Trust No. 1 and Industry Superannuation Property Trust No. 2); ISPT 50 Lonsdale Street Property Trust; ISPT Development and Opportunities Fund No. 1 (DOF No.1), ISPT Development and Opportunities Fund No. 2 (DOF No. 2) and ISPT Grosvenor International Property Trust (IGIPT). These funds have an impressive property portfolio of over 100 properties diversified across the office, retail, industrial, hotel and car park sectors diversified assets across Australian and International property markets including Europe, the United Kingdom and United States.. The portfolio is anchored by leases to Australian and State Governments, blue-chip corporates, leading companies within Australia and small business.

* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges