The proposed merger between media companies NZME and Fairfax NZ could have implications for the property market, particularly in Auckland.
If the merger proceeds there would likely be substantial numbers of redundancies at both organisations and that will affect the amount of office space the new organisation would need.
NZME, which publishes the NZ Herald and operates a chain of radio stations including Newstalk ZB, recently moved into a new corporate headquarters and newsroom on Victoria St West in Auckland's CBD.
And Fairfax NZ, which publishes the Sunday Star-Times, Dominion Post, The Press and a stable of magazines, is moving most of its Auckland operations into the new Cider building in Ponsonby in August.
Fairfax is an anchor tenant in the building, which has just been sold into a property syndicate by property management and syndication company Oyster Group.
However if the merger proceeds, the new entity will be looking to consolidate its operations and it's unlikely that it will need two newsrooms in Auckland.
That could see Fairfax's new offices in Ponsonby becoming surplus to requirements.
However the merged entity would not be able to simply walk away from the premises.
Oyster Group chief executive Mark Schiele said Fairfax had signed a 12 year lease on its new premises and was on track to move in in August, once the fit out was completed.
If the merger proceeds, the new entity would assume the existing obligations of both NZME and Fairfax NZ, including leases on property.
And although leases can be renegotiated, that would likely prove an expensive business, as the syndicate that owns the building could refuse to accept any changes to the lease unless they were on terms it considered favourable.
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