Capital Properties' net profit rises 13pc

By Anne Gibson

Listed real estate investor Capital Properties has seen net profit rise 13 per cent from $42.4 million to $47.7 million for the year to March 31.

The Wellington-based landlord also added 14 per cent to the value of its property portfolio.

The AMP-owned entity now owns property valued at $615.3 million, up $78.7 million since last year.

Earlier this year, a sharemarket stand saw Capital taken over by AMP. Dividend payments were suspended and former chief executive Chris Gudgeon left to work for Auckland International Airport.

AMP offered Capital shareholders $1.48 a share in a deal which was criticised for being too cheap. Capital said yesterday that on the basis of its latest revaluations, its shares had a net tangible asset of $1.66, up 29 per cent from $1.29 a year ago.

Stephen Costley, general manager of AMP Property Portfolio, which took over Capital, said the company would focus on the Wellington government sector.

Low risk, high-rental growth and further development and refurbishment opportunities made the city attractive. Rentals for office space continued to rise and demand for property assets remained strong.

Capital expected to finish the new Ministry of Defence building in Thorndon by September. The new building is projected to add $78.5 million to the value of the company's portfolio at the start of the 18-year lease.

For the the latest valuations, the building was estimated to be worth $57.8 million.