ANZO settles $77 million Wellington acquisitionMay 6, 2008 New Zealand’s largest listed investor in prime commercial office property, AMP NZ Office Trust (ANZO), has settled its $77 million acquisition of a newly-built, fully-occupied Wellington office and retail complex. ANZO chief executive Robert Lang said 29 Willis Street, which becomes the 15th property in the ANZO portfolio, was recently completed on schedule and officially opened. Mr Lang said the property is now 100 percent leased. The office space – comprising 80 percent of the net lettable area – and a number of the carparks are leased to Land Transport New Zealand for 15 years, while tenants have recently been secured for the the remaining two of the 16 retail tenancies. The weighted average lease term (WALT) is 11.3 years. 29 Willis Street enjoys a prime location one block from the Wellington waterfront, with dual frontages to Willis and Victoria streets. It is part of the wider Chews Lane precinct, which is currently undergoing an extensive $180 million office, retail and apartment redevelopment. Mr Lang said the complex is estimated to be under-rented by 8.5 percent, with rent reviews scheduled on 80 percent of the net lettable area over the next two years. The initial 12-month running yield of 7.0 percent will rise to 7.45 percent in the second year. Following the acquisition:
The acquisition has been funded by bank debt. Following settlement, ANZO’s gearing (bank debt to total assets) is 26.1 percent, well below the self-imposed ceiling of 40 percent. ANZO is managed by AMP Haumi Management Limited. About ANZO ANZO is New Zealand’s largest listed investor in prime and A-grade commercial office property. A unit trust listed on the New Zealand Exchange, ANZO currently owns 15 New Zealand office buildings with a total gross value of more than $1.5 billion – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House, AMP Centre and 21 Queen Street; and Wellington’s State Insurance Tower, Vodafone on the Quay, HP Tower, 125 The Terrace, No. 1 and 3 The Terrace, Pastoral House, Mayfair House, AXA Centre, Deloitte House and 29 Willis Street.
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