Markets with Madison: Precinct Properties is hiking rents by 17 per cent as workers return to offices, and Sky Television is considering launching a Neon ad-tier service to compete with Netflix. Video / NZ Herald
The commercial landlord that owns Auckland’s $1 billion Commercial Bay precinct and PwC Tower, is charging companies 17 per cent more in rent for new leases across its premium office buildings, the chief executive has revealed.
Scott Pritchard told Markets with Madison it increased commercial rents by that much lastyear upon renewal, but no company was struggling to pay - in fact, there was so much demand for office space, Precinct could push through more rent increases this year.
“We’ve actually seen levels of people in offices that we haven’t seen before Covid. Our portfolio is actually full.”
Precinct’s net rental income grew 9 per cent in the six months to December, although it suffered a 98.5 per cent drop in net profit as the valuation of its property portfolio fell by $53.6 million. While that was an unrealised paper loss, Pritchard said it was still of concern.
Precinct Properties, owner of the $1b Commercial Bay precinct and PwC Tower, saw its valuation drop by about $53m in the six months to December. Photo / Supplied
Sky Television’s half year net profit also fell, down 7.3 per cent to $26.2m, as it announced a restructure proposal with 170 jobs on the line in New Zealand to increase resources offshore in India and the Philippines.
Its chief executive Sophie Moloney told Markets with Madison alongside the proposal and other cost-cutting considerations, it was considering launching a cheaper version of its Neon streaming service with ads to boost subscribers, following in Netflix’s footsteps.
On Sunday, Sky said the National Geographic channel would disappear from its pay TV and streaming services from March 31 and would not be replaced. The National Geographic channel is majority owned by Disney, which is progressively making its own Disney+ the exclusive home of most of its content.
She discussed the impact inflation could have on its subscriber growth as consumers looked to cut household costs.
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