Roadshow for ANZO rights issue

By Chris Hutching

Friday 4th June 2004

ABN Amro Rothschild representatives visited the main centres this week to give presentations to share brokers and financial advisers promoting the AMP NZ Office Trust (ANZO) $95.2 million rights issue that the broking company is underwriting.

The rights issue will partially fund two new Wellington office towers being bought by the listed trust for a total of $146 million.

The Australian-based co-manager of the trust, Ronin, has 30% ($29 million worth) of the units on issue and will take up its entitlement while the second largest unit holder with 23.5%, AMP Properties Securities, has renounced its entitlement in favour of ABN Amro which will market them to clients, raising new capital from other investors from other investors.

To sweeten the deal, Ronin has agreed to reduce the component of its fee attributable to the acquisitions by 50% for 2005 and 2006.

ABN Amro brokers highlighted the features they hope will attract retail investors such as the annual 8.5% capital guaranteed dollar for dollar conversion set at the current net tangible asset backing of 92c a share for a term of three years (compared to some of the longer-term issues in the market).

They also spoke about the financial benefits of expanding the trust (projecting a 2.9% increase in distributions in 2005 to 7.2c per unit), and the quality of the two news office towers, Mobil On The Park and the State Insurance tower. The net effect of the acquisitions will also reduce over-renting over the whole portfolio from 5.5% to 5%.

Comments from our readers

No comments yet