ASSET: APT: ANZO completes $11.7m sale of Wellington retail units

14 Apr 2010 2:50 pm

APT 14/04/2010 ASSET

REL: 1450 HRS AMP NZ Office Trust

ASSET: APT: ANZO completes $11.7m sale of Wellington retail units

AMP NZ Office Trust completes $11.7 million sale of Wellington retail units

AMP NZ Office Trust (ANZO), New Zealand's largest listed investor in prime commercial office property, has completed the sale of five individually-titled retail units in Wellington's Chews Lane precinct, realising a total of $11.7 million (before deducting disposal costs).

The units, at 60 Victoria Street, were marketed by Bayleys Capital Commercial via a tender process and had all attracted multiple bids, said ANZO chief executive Robert Lang. The total realised (before deducting disposal costs) was 11 percent ahead of ANZO's current book values for the five units. The purchasers were private investors and family trusts and the sale prices represented yields ranging from 6.1 percent to 7.7 percent, with the weighted average yield being 7.12 percent.

Bayleys Capital Commercial, which received strong enquiry for the five properties from throughout New Zealand and as far afield as Australia, noted that the yields achieved are evidence of the strength of the investment market for well-located properties with strong tenant covenants.

Settlement is due to take place in June 2010 and 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.

The five retail units were acquired by ANZO in 2008 as part of a larger purchase in the award-winning 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. The five units were also 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 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:00193737 For:APT Type:ASSET Time:2010-04-14:14:50:12

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