AMP Property Portfolio announces takeover offer

15 September 2005

AMP Property Portfolio announces takeover offer for Capital Properties New Zealand

AMP Property Portfolio (APP) today announced that it intends to make a full takeover offer (Offer) for all the ordinary shares in Capital Properties New Zealand (CNZ). The Offer will be $1.42 cash per share.

The Offer of $1.42 is generous and represents a very full price for CNZ. It is at a substantial premium to comparable benchmarks, and is:
-ƒn4% higher than the highest price at which CNZ shares have ever traded on the NZSX ($1.36)
-ƒn8% higher than the NZSX closing price before the Offer was announced ($1.31)
-ƒn10% higher than CNZ¡¦s net tangible assets at last balance date of 31 March 2005 ($1.29)
-ƒn24% higher than the average valuation of CNZ by four independent analysts
-ƒn39% higher than the CNZ price on the NZSX in November 2004, before the corporate activity for CNZ shares began ($1.02). The Offer is principally subject to APP holding 50 percent or more of CNZ¡¦s voting rights (APP currently has a 15.7% stake in CNZ) and obtaining OIO consent on usual terms.

The acceptance level is set at the minimum required by the Takeovers Code. The Offer is scheduled to be open for only 30 days, opening on 30 September 2005 and closing on 31 October 2005. CNZ is listed on the New Zealand Stock Exchange and is an investor in commercial property.

Its portfolio comprises properties in Wellington (60%), Auckland (32%) and New Plymouth (8%) valued at $536.6 million at 31 March 2005. ¡§The intended offer for CNZ shares is consistent with our strategy of investing in quality New Zealand properties,¡¨ said Stephen Costley, General Manager, APP.

CNZ¡¦s portfolio is primarily occupied by government and private sector tenants, and includes a range of properties such as Bowen House, Novell House and Lambton Square in Wellington. ¡§CNZ¡¦s portfolio of properties is complementary to APP¡¦s own portfolio, and its weighting towards the Wellington region is also a positive feature for APP. ¡§Increasing our holding in CNZ 2 will diversify our geographical spread, and increase our investment in this market,¡¨ said Mr Costley.

Catherine Savage, Managing Director of AMP Capital Investors (NZ), said the offer is consistent with AMP Capital's strategy of seeking new investment opportunities. ¡§APP is New Zealand's largest unlisted property vehicle and invests in office, retail and industrial assets.

This announcement is an exciting development for our business and demonstrates our commitment to seeking new investment opportunities on behalf of our clients,¡¨ said Ms Savage. APP¡¦s offer will not extend to CNZ¡¦s outstanding Capital Notes. These will remain outstanding under their existing terms and conditions.

ENDS

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