AMP portfolio cracks $1b

The listed property sector's biggest revaluation gains were booked yesterday by specialist commercial landlord AMP NZ Office Trust, whose portfolio rose $126 million to break the $1 billion barrier.

The trust's unrealised revaluations were the highest in the sector this year and the biggest since the trust listed eight years ago.

AMP now owns property valued at $1.01 billion, up 14 per cent in a year. Wellington properties performed the best, some rising 18 per cent to 20 per cent in the year to June. The biggest value jump came from the trust's PricewaterhouseCoopers Tower in Auckland, up from $190.4 million to $216.4 million.

Last month, rival landlord Kiwi Income Property Trust said its total assets had increased by $184 million to reach $1.45 billion. It recorded portfolio revaluation gains of $103.2 million. Kiwi released only a partial list of new values. AMP released the full list.

Rob Lang, the AMP trust's executive manager, said his revaluations were better than any other listed property entity and he was bullish for the next two years.

He said the trust's performance could be maintained because of the large amount of prime Auckland and Wellington office space coming up for rent negotiations.

The trust would negotiate new rents on 12ha in the next two years - 60,000 sq m from next month until the end of June next year and a further 60,000 sq m reviewed the following year. The trust's portfolio was 6.8 per cent under-rented, meaning the amount it charged for office space was about 7 per cent beneath market rates.

Lang expects negotiations to result in healthy rent rises.

The trust's rents were up 15.5 per cent in the past year, mainly driven by an expanding Government sector and demand for quality office space, particularly in Wellington.

But Monday's generator failures in the PWC Tower on the Auckland waterfront and IAG House in Queen St were being investigated.

* The trust's full-year result is out in early August.

GOING UP

* Mayfair House, up 20 per cent from $29.3 million to $35.2 million.

* No 3, The Terrace, up 18 per cent from $9.1 million to $10.8 million.

* HP Tower, up 18 per cent from $50.9 million to $60.3 million.

* State Insurance, up 17 per cent from $81.9 million to $96 million.