ANZO to purchase Wellington’s Mayfair House for $29.3 millionSeptember 14, 2005 AMP NZ Office Trust (ANZO) has today announced that its contract to purchase the $29.3 million freehold interest in Wellington’s Mayfair House is unconditional. The purchase of Mayfair House will increase ANZO’s weighting to the strong Wellington market and the Government sector. ANZO executive manager Robert Lang said the acquisition will deliver a yield on purchase price of 9.0 percent and will be accretive to earnings in the current financial year. Mayfair House is 100 percent occupied, with 83.7 percent of the office net income derived from Government tenants, and is located on The Terrace, just 200 metres from parliament. ANZO advised the NZX last month that it was carrying out due diligence on a potential Wellington acquisition. Settlement will take place on October 7, 2005. Mr Lang said Mayfair House represents an excellent opportunity to acquire a sound commercial property investment with a promising outlook. “This acquisition strengthens our exposure to the Government sector and improves our ability to grow net income and returns to investors,” he said. Mayfair House was constructed in 1986 and is clad in dark tint glazing. It is well located, enjoying a favourable aspect at the northern end of the The Terrace, close to parliament and key government departments. It comprises 13 office floors, each of 1055 sqm – some of the largest and therefore most efficient plate sizes within the Government precinct. The property includes 251 car parks. Key tenants are Land Information New Zealand and the Department of Corrections. The weighted average lease term (WALT) is 4.0 years. Following the acquisition, Mr Lang said ANZO’s total gross portfolio value will increase to $876.8 million. ANZO’s portfolio occupancy rate and weighted average lease term is an attractive 97.4 percent and 6.0 years respectively. The acquisition will improve portfolio diversification through a reduced reliance on any one property or tenant. The favoured Wellington location will comprise 45 percent of the total portfolio, up from 43 percent, and Government tenants will now occupy 19.4 percent of ANZO’s portfolio net lettable area and account for 17.8 percent of net income, up from 15.4 percent and 14.8 percent respectively. The purchase will be funded from a combination of bank debt and proceeds from ANZO’s Unit Purchase Plan which is currently in progress. Following settlement, ANZO’s gearing is expected to be 33.6 percent, well below the 50 percent limit stated in its trust deed and its self-imposed ceiling of 40 percent. Mr Lang said that this funding arrangement leaves ANZO with a strong balance sheet and an ability to continue to grow and take advantage of further investment opportunities. ANZO is managed by AMP Multiplex Management Limited. About ANZOANZO is New Zealand’s largest listed investor in premium and A-grade commercial office property. A unit trust listed on the New Zealand Exchange, ANZO currently owns 11 New Zealand office buildings with a total gross value of more than $876.8 million – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House and Quay Tower; and Wellington’s State Insurance Tower, Mobil on the Park, HP Tower, 125 The Terrace, No. 1 and 3 The Terrace, Pastoral House and Mayfair House. Contact: Robert Lang |