Anzo gains from rising Wellington office rents

Landlord AMP New Zealand Office Trust said interest in its vacant office space remained strong as it disclosed rising rents from its Wellington office blocks had boosted its first quarter profits.

Key drivers of the 11.3 per cent rise in net earnings to $8.32 million were income from the capital's landmark Mobil on the Park building, the State Insurance Tower and the refurbished Pastoral House.

Trust executive manager Rob Lang said rents from Auckland were also up, particularly in the trust's PricewaterhouseCoopers Tower, IAG House, ANZ Centre and Quay Tower.

Direct property expenses had been held to an increase of just 0.1 per cent.

Unit-holders will get a first-quarter distribution of 1.85c a unit, up 3 per cent and higher than forecast. The payment is made on November 4.

Anzo's gearing ratio at the close of the quarter was 30.6 per cent, which will increase to 33.4 per cent as a result of the settlement today of its $29.3 million purchase of Mayfair House in Wellington.

"This is comfortably below the self-imposed 40 per cent limit and 50 per cent limit contained in the trust deed," Lang said.

About 65 per cent of Anzo's unit-holders invested up to $5000 through a unit purchase plan in August and September, raising about $15.75 million. The proceeds were used to fund the purchase of Mayfair House.

Lang said the trust had re-let space soon to be vacated by Air New Zealand in Quay Tower. Financial services firm AMP will move into three of the airline's five floors.

- additional reporting NZPA