ASSET: APT: AMP NZ Office Trust to sell Wellington CBD retail units

26 Feb 2010 2:22 pm

APT 26/02/2010 ASSET

REL: 1422 HRS AMP NZ Office Trust

ASSET: APT: AMP NZ Office Trust to sell Wellington CBD retail units

AMP NZ Office Trust to sell Wellington CBD retail units

AMP NZ Office Trust (ANZO), New Zealand's largest listed investor in prime commercial office property, has made a decision to offer five individually-titled retail units in Wellington's Chews Lane precinct for sale.

Chief executive Robert Lang said Bayleys Real Estate has been appointed to market the units via a tender process, which is in progress with tenders closing on 30 March 2010.

The five were acquired by ANZO in 2008 as part of a larger purchase in the Chews Lane precinct from developer Willis Bond & Co. ANZO's purchase was led primarily by the opportunity to acquire the office space, which comprised 80 percent of the area and was fully leased for 15 years to a Government tenant.

However, the retail space in general is not a core investment for ANZO.

Mr Lang said the five units, at 60 Victoria Street, have a combined net annual rental of more than $840,000 and are in a price range that is popular with small to medium investors and family trusts, making them more "liquid" than ANZO's other investments.

ANZO will initially use the sale proceeds to repay bank debt. Mr Lang said this will have a neutral effect on earnings and gearing will remain essentially unchanged at 21.7 percent.

Bayleys' Mark Sherlock says opportunities for individual investors to purchase a stake in "golden mile" retail properties are extremely rare - the majority of such retail units are incorporated within larger office buildings.

ANZO also owns a further 11 retail units in the Chews Lane precinct at 50 Victoria Street, which are integrated with an office component to form a single building, with ANZO as sole owner. These units are not part of the sales process.

ANZO is managed by AMP Haumi Management Limited.

About ANZO ANZO is New Zealand's largest listed investor in prime and A-grade commercial office property. A unit trust listed on the New Zealand Exchange, ANZO currently owns 15 New Zealand office buildings with a total gross value of more than $1.3 billion - Auckland's PricewaterhouseCoopers Tower, ANZ Centre, 151 Queen Street, AMP Centre and 21 Queen Street; and Wellington's State Insurance Tower, Vodafone on the Quay, HP Tower, 125 The Terrace, No. 1 and 3 The Terrace, Pastoral House, Mayfair House, AXA Centre, Deloitte House and 29 Willis Street (Chews Lane).

-ends- Media enquiries: Robert Lang Sue Ryan Chief Executive Officer Communications Manager AMP NZ Office Trust AMP NZ Office Trust Office: +64 4 494 2268 Office: +64 4 494 2260 Mobile: +64 29 494 2268 Mobile: +64 29 494 2260 Email: robert.lang@anzo.co.nz End CA:00191810 For:APT Type:ASSET Time:2010-02-26:14:22:31

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