Investment policy and strategy

ANZO’s investment policy is to invest predominantly in prime Central Business District (CBD) properties in major New Zealand cities.

Within this policy, on a selective basis, ANZO may take advantage of other office market investment opportunities in addition to continuing to pursue growth in the prime sector of the office market.

Such opportunities may include acquisitions of B-grade properties, refurbishments or redevelopment projects and other office investments outside of defined CBD locations.

These opportunities will be considered where there is potential for above-average returns, through attributes such as tenant convenant, length of lease, location, redevelopment opportunities, cashflow structure or special market supply-and-demand dynamics.

It is intended that prime properties will continue to form the core of ANZO’s portfolio, providing stability and diversification to complement higher-yielding, non-prime investments.

Strategy

ANZO’s principal strategies are to:

  • Actively manage cashflows to grow the earnings and net tangible asset value per unit
  • Increase the size of the portfolio to maintain its quality and diversity through development or purchase of prime CBD properties
  • Maintain an efficient capital structure
  • Maintain superior presentation and operational performance of ANZO’s properties
  • Participate in development and joint venture opportunities consistent with the investment objectives and strategies of ANZO
  • Maintain strong tenant relationships and a high tenant retention rate
  • Actively manage the tenancies and lease profiles of ANZO’s properties to ensure diversity, a weighted average lease term in excess of five years and to add value wherever possible, and
  • Capitalise on the Manager’s local and international investment and property expertise, to assist in formulating and implementing these strategies.

Gearing (total debt to total assets)

ANZO operates within a self-imposed gearing threshold of 40%, below the debt ceiling of 50% stated in the Trust Deed under which ANZO was formed.