ANZO expects institutions to support $201m rights issue

AMP NZ Office Trust (ANZO) is seeking $201 million through a rights issue and will pay out less to unitholders to adjust to the difficult economic environment.

That environment produced a $172 million unrealised downward revaluation in the portfolio of New Zealand's largest listed investor in prime commercial buildings in nine-month accounts released yesterday, as well as $32 million of unrealised losses on interest rate swaps.

ANZO said its 19.9 per cent shareholder Haumi Company is supporting the renounceable right issue, which offers the right to buy nine new units for every 20 held at 65c a unit. The price is a 21 per cent discount to the 82c average in the past five trading days.

ANZO said it expected good support from institutions and noted it has net tangible assets worth $1.11 a unit. The rights issue is underwritten by First NZ Capital Securities Ltd.

ANZO is now predicting a payout of 6.92c a unit in the year to June 30, down 17.5 per cent on last year. The fall reflects the rise in units from the rights issue and the need to take a conservative approach to reduce volatility of future distributions.

ANZO is targeting 2 per cent growth in distributions. It said it had a new $242.5 million three-year bank facility and would use the rights issue proceeds to repay an old facility and enter into a second new $100 million facility for three years.

ANZO yesterday reported a $141 million bottom-line loss in the nine months to March 31. The operating profit before tax was up 6.5 per cent at $47.12 million.

- NZPA