AMP Property Portfolio is on its way to becoming New Zealand's largest bulk retail property owner after announcing a $150 million deal yesterday.
Portfolio general manager Murray Jordan said that the fund would own $580 million worth of property within three years.
This would make it dominant in bulkretail, which the Property Council's performance index says has been the top-performing category of real estate.
Subject to Overseas Investment Commission approval, three deals have been done with Takapuna developer Jonmer Projects for:
* Vacant land next to the Manukau Supa Centa, a bulk retail property owned by AMP.
* Northwood Supa Centa at Belfast on the outskirts in Christchurch, a large-format retail centre.
* 9ha of land at Te Rapa near Hamilton.
Jordan said Jonmer had contracted to build new stores on vacant sites beside the Manukau and Christchurch properties, find tenants for them and sell the finished developments to AMP at a pre-agreed yield.
In June 2000 Jonmer chief Ian Calderwood put the Manukau Supa Centa on the block, saying he would use the cash from its sale to develop other bulk retail centres in Christchurch, Wellington, Hamilton and Tauranga.
Jordan said the deal would expand the Christchurch centre by a third and the Manukau centre by a quarter.
AMP Property Portfolio is an unlisted diversified fund which owns 22 office, industrial, retail, hotel and development properties.
