AMP NZ Office portfolio value falls 10.6%

Thursday 12th March 2009

AMP NZ Office Trust , New Zealand's third-largest listed property trust, said the value of its property portfolio has been reduced by 10.6% as a result of its latest independent valuation.

The value of the portfolio fell by $166.9 million to $1.4 billion in the nine months ended March31, the trust said in a statement. The valuation was carried out by CB Richard Ellis and Colliers International. The reduction will be recognized in the trust's third-quarter results.

Chief executive Robert Lang said the reduction in value was mainly due to an increase in the capitalisation rates adopted by valuers, which rose to 7.84% from an average of 7.05% at June 30. Market rents for the trust's properties have stabilized, the valuers concluded.

"At the portfolio level, the outlook is encouraging, with over 10,000sqm leased or renewed in both Auckland and Wellington over the past three months, for terms ranging up to 12 years," Lang said. "ANZO remains on track for a record full-year gross distribution to investors."

By Jonathan Underhill

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