AMP NZ Office Trust successfully completes $40 million placementDecember 13 2006 New Zealand’s largest listed investor in prime commercial office property, AMP NZ Office Trust (ANZO), has successfully raised $40 million in equity through a placement of new units, with the placement closing early due to strong demand. The institutional placement was announced earlier this week, in conjunction with the $39.5 million acquisition of Wellington’s AXA Centre, a unit purchase plan and an increase in future investor returns on the back of continued strong portfolio performance and outlook. ANZO executive manager Rob Lang said 36,036,036 new units will be issued at a price of $1.11, representing a discount of 1.8 percent to the five-day volume-weighted average unit price prior to the announcement of the placement. The placement had very strong support from both New Zealand and offshore institutional investors, with a number of new offshore institutions joining the ANZO unitholder register. “We are very pleased with the support shown for the placement and the confidence the market has shown for ANZO in respect of both the AXA Centre acquisition and the strong position of ANZO generally,” said Mr Lang. The support was highlighted by ANZO’s ability to close the placement early. Settlement of the placement and issue of the placement units is expected to occur on Monday December 18, and the new units will rank equally in all respects with existing ordinary units in ANZO. The proceeds will be used to fund the acquisition of the AXA Centre, an A-grade building located on The Terrace, which is 100 percent occupied by institutional and quasi-government organisations, increasing ANZO’s exposure to government tenants and to the top-performing Wellington market. The placement, which was managed by First NZ Capital, means ANZO’s balance sheet is in a stronger position from which to grow the portfolio and further enhance unit-holder returns. Gearing (bank debt to total assets) has been reduced to 28.6 percent, giving ANZO approximately $195 million of bank debt capacity before reaching its self-imposed 40 percent ceiling. ANZO also intends to implement a unit purchase plan of a maximum of $5,000 per unit-holder, which will allow all of ANZO’s unit-holders to participate in the capital-raising and growth initiatives. More details on the proposed plan, which is expected to be offered early in the New Year, will be provided in due course. As a result of the early close of the placement, ANZO has applied for a lifting of the trading halt currently in effect in relation to ANZO’s units and mandatory convertible notes. 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 (excluding the AXA Centre) with a total gross value of more than $1 billion – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House and Quay Tower; and Wellington’s State Insurance Tower, Vodafone on the Quay (formerly Mobil on the Park), HP Tower, 125 The Terrace, No. 1 and 3 The Terrace, Pastoral House and Mayfair House. Media enquiries: |