Big move likely to hurt Affco's pocket

By PHILIPPA STEVENSON

Affco's exit from its Auckland offices could prove more expensive than the meat company expects.

After 98 years in the central city, the company's headquarters will move to empty offices at its Horotiu plant, near Hamilton, by December. It expects the move to save $1 million a year.

But rental agents question the company's plan to sub-lease its eight floors at Affco House in Swanson St.

One said Affco was tied into a $1 million-a-year lease until 2011 and the "tired" offices were likely to be difficult to tenant.

English language schools were the biggest users of buildings of similar vintage, but they were not popular with other tenants. Students were hard on facilities such as lifts and their waiting around buildings for classes was not welcomed.

The floors of Affco House had different owners, which could complicate getting agreement to sub-lessees.

Chief executive Tony Egan said Affco's lease had up to eight years to run, not the five he had previously mistakenly told the Business Herald.

The company had been advised English language schools leased 47 per cent of similar buildings in the central city, he said. It had inquiries from a number of interested parties to lease between three and all eight floors and was confident tenants would be found.