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AMP NZ Office to buy Westfield Downtown mall for $90M

Friday 21st September 2012

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AMP NZ Office, which is changing its name to Precinct Properties New Zealand, agreed to buy Auckland's Westfield Downtown Shopping Centre from Westfield Group and Westfield Retail Trust for $90 million.

The purchase price is below an independent valuation and is at an initial yield of 7.6 percent. The property has a weighted average lease term (WALT) of 2.9 years, the company said in a statement

The acquisition would lift annualized earnings by about 3 percent and allows the property investor to forecast a full-year 2013 dividend of 5.12 cents a share, up 1.6 percent from 2012..

Westfield Downtown is adjacent to AMP Office's PwC Tower, Zurich House and AMP Centre and "provides the potential to create a more attractive environment through linking buildings and access-ways," said chief executive Scott Pritchard.

The name change to Precinct will be made as of Sept. 28 and reflects "its evolution over 15 years to become New Zealand's only specialist listed owner of premium central city office space."

The purchase will be funded via bank debt as AMP Office has a new $107 million tranche expiring in September 2017 and a $53 million tranche expiring in July 2015. The new facilities increase the total amount to $535 million from $475 million.

The acquisition will lift AMP Office's gearing to 31.5 percent from 27 percent at June 30. The conditional purchase is expected to settle in November.

BusinessDesk.co.nz

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