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Deutsche Office Trust has reported a 1.8 per cent rise in distribution to
10c for the year to June 30 thanks to a 13 per cent increase in net profit to
$112.7 million.
Deutsche Office Trust general manager Michael Brown said the past 12 months
had been very challenging for the trust.
But he said the lower level of supply entering the market in the form of new
office towers and an improving economy had put the trust in a strong position.
``Business confidence has been down and demand for office space has
contracted along with company profits," Mr Brown said.
``The trust maintains a 65 per cent weighting towards the Sydney CBD office
market. Despite the current soft leasing market in Sydney, we expect it to
bounce back strongly by mid to late 2003 prior to our pending vacancies in the
core and western corridor.
Yesterday the trust said it had leased 6600 square metres of space at 1
Margaret Street, Sydney, the former Citibank Centre, to Credit Union Services
Corp of Australia.
According to Mr Brown, the trust's development pipeline would be a driver of
future growth.
The trust is undertaking $350 million of new office developments including
Lend Lease Corp's new head office at Hickson Road, Sydney and the 240 St Georges
Terrace project in Perth. The two projects are due for completion in late 2003.
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