By Christine Nikiel
Thursday 24th April 2003
|Text too small?|
AMP is setting up a new property investment unit, to be headed by Property For Industry boss Peter Alexander.
AMP head of property Anthony Beverley said the first initiative would be to set up an "opportunity fund" which would look to attract equity for high-return investments.
The new venture will be a break from the company's traditionally conservative approach to investing and will see it become more opportunistic and target higher returns.
As it is, AMP's New Zealand investments listed AMP NZ Office Trust (ANZO), which invests in premium office buildings, listed industrial specialist PFI and the AMP Property Portfolio do not allow high risk-taking investment.
"We'll be getting into risks we can manage. There's market hungry for higher returns and we feel we can service it," Mr Beverley said.
Mr Beverley said the new venture was a result of the company's "core and satellite approach" to property investment, an approach used widely overseas.
Although AMP's core property investments conventional real estate such as office, industrial and retail property, with a focus on yield-based returns all had established track records, AMP Henderson was aware of a range of higher risk and return opportunities that did not fit the well-defined investment mandates and risk profiles of the core funds, Mr Beverley said.
The new unit would focus mainly on satellite activities more opportunistic and targeting a higher return and greater risk and would operate across all property types and transactions, Mr Beverley said.
The unit would seek property transactions on its own account and in conjunction with joint-venture partners, he said.
While not speculating on potential partners, Mr Beverley highlighted the successful joint venture between AMP and developer Willis Bond, a joint partner in The Hub industrial estate at Botany Downs in Auckland.
No comments yet
MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite