AMP NZ Office buys Auckland's Downtown Shopping Centre
Stock Exchange-listed AMP NZ Office is buying the Westfield Downtown Shopping Centre on Auckland’s waterfront for $90 million.
The midday Stock Exchange announcement says the acquisition will increase annualised earnings by 3%, providing for an increased dividend of 5.12cps for the 2013 financial year, a slight increase on the 2012 dividend of 1.6%.
Chief executive Scott Pritchard describes the purchase as “one of New Zealand’s best long term investment opportunities”. It has further development potential.
The site adjoins the company’s PwC Tower, Zurich House and AMP Centre and provides potential to create accessways and linkages.
Mr Pritchard says he also supports Auckland Council’s call for a masterplan for the precinct.
AMP NZ Office is changing its name to Precinct Properties New Zealand, reflecting its evolution over 15 years to become a specialist listed owner of premium central city office space.
Opened in 1975, the Downtown Shopping Centre has a land area of about 6500sq m and resource consent for a 71,000sq m mixed-use office and retail development.
It was refurbished in 2005 and is fully leased to around 80 retailers over four levels with a total of 14,368sq m of net lettable space.
The purchase price is below independent valuation and reflects an initial yield of 7.6%.