AMP property in bid for Capital Properties

AMP Property Portfolio is to launch a full takeover offer for Capital Properties.

The offer, which is conditional on AMP Property gaining at least 50 per cent of Capital Properties' voting rights, will be for $1.42 a share. The offer price is 8 per cent higher than the $1.31 the stock was trading at yesterday.

The offer will open on September 30 and close on October 31.

AMP increased its holding in Capital Properties to 15.7 per cent in May this year, buying a 10.4 per cent stake through a stand in the market at what was then described by analysts as a "full price" of $1.35 per share.

Speculation has been rife for months that either AMP or other major Capital Properties shareholder Kiwi Income Property would launch a full takeover bid.

KIP upped its stake in Capital Properties to just under 20 per cent in November last year.

Commercial properties in Wellington make up the bulk Capital Properties' portfolio, at 60 per cent, followed by Auckland at 32 per cent and New Plymouth at 8 per cent.

AMP Property's general manager Stephen Costley said Capital Properties' portfolio was complementary to AMP's. "Increasing our holding in Capital Properties will diversify our geographical spread, and increase our investment in this market," Mr Costley said.

As at March 31 this year the portfolio was valued at $536.6 million.

- NZPA