Kiwi Property Trust Buys Hamilton's Downtown Plaza

Kiwi Income Property Trust Buys Hamilton's Downtown Plaza

Auckland (July 16) - Kiwi Income Property Trust has taken a further step in the expansion of its retail property portfolio, with the purchase of Hamilton's landmark Downtown Plaza being declared unconditional.

The Trust is buying Downtown Plaza, which has 32 specialty retail tenancies, for NZ$13.75 million from a group of local investors.

Downtown Plaza has the highest pedestrian counts in Hamilton and is located adjacent to Kiwi Income Property Trust's successful Centre Place Shopping Centre, which is already the pre-eminent retail centre in the Waikato Region.

Angus McNaughton, chief executive of Kiwi Income Property Trust, said the new property adds significant value and growth potential to the Trust's portfolio.

"We have been steadily increasing our retail presence and the purchase of Downtown Plaza is another sign that Kiwi Income Property Trust is extremely well positioned to benefit from continued retail-sector growth over time."

"Our retail centres have an outstanding tenancy mix and we are looking forward to reaping the benefits of our expansion in this sector."

The purchase of Hamilton's Downtown Plaza is also a further sign of Kiwi Income Property Trust's geographical diversification and expansion. The Trust will soon open the first stage of a NZ$90.9 million expansion of the Northlands Shopping Centre in Christchurch, and last month announced a NZ$9.94 million refurbishment for the Wellington region's largest shopping centre, North City, in Porirua.

Kiwi Income Property Trust also owns the Plaza Shopping Centre in Palmerston North, which is Manawatu's premium shopping destination.

Mr McNaughton said the retail expansion cements Kiwi Income Property Trust's position as New Zealand's largest diversified property trust, with over NZ$925 million invested in a diversified portfolio of prime office, retail and industrial assets located throughout New Zealand.

As previously announced, Kiwi Income Property Trust recently raised NZ$25 million through a placement of units to fund the acquisition of Downtown Plaza and other retail projects.

Kiwi Income Property Trust's website address is www.KIPT.co.nz .

About Kiwi Income Property Trust

Kiwi Income Property Trust's aim is to maximise returns for its unit holders through the careful acquisition and professional management of its property portfolio. All net income (after tax) is distributed to unit holders in each financial year.

The Trust is listed on the New Zealand Stock Exchange and is the market's 12th largest company by market capitalisation.

The Trust reported a 3.2% increase in net income after tax to NZ$44.75 million for the year to 31 March 2003.

The retail assets of the Trust's portfolio have been consistent performers in one of the strongest sectors of the New Zealand property market.

The continued expansion and development of shopping centres in the portfolio is an important element of the Trust's retail investment strategy because of the relatively small number of large established shopping centres in New Zealand, and the limited number of opportunities for new investment.

Kiwi Income Property Trust's office assets are located in key CBD locations in Auckland, Wellington and Christchurch. The quality and location of the properties see them recognised as leaders in each city. The properties include:

Royal & SunAlliance Centre Auckland National Bank Centre Auckland HP House Auckland Vodafone House Auckland AUT Faculty of Arts Building Auckland Majestic Centre Wellington BP House Wellington PricewaterhouseCoopers Centre Christchurch

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