AMP NZ Office Trust (Anzo) today revealed an $82 million gain in its annual portfolio revaluation.
Anzo, the country's largest listed office property investor, said the independent valuation put a figure of $842.4 million on its property portfolio, up almost 11 per cent on a year ago.
The company's investmentsinclude the PricewaterhouseCoopers Tower, ANZ centre and Quay Tower in Auckland. In Wellington it owns the State Insurance Tower, Mobil on the Park, HP Tower and a number of government-occupied buildings including Pastoral House and three Terrace properties.
The revaluation gain increases Anzo's net tangible assets per unit by 10.3 per cent to $1.
Anzo executive manager Robert Lang said the company has benefited from the booming economy and high demand for office space.
"Anzo's portfolio is favourably disposed toward New Zealand's solid office market supply and demand fundamentals, and this has been reflected in high occupancy and positive outcomes from rent reviews across the portfolio."
Notable increases include the Auckland PricewaterhouseCoopers Tower, which was up 7 per cent to $190.4 million, and Wellington's HP Tower (up 13.1 per cent to $50.9 million) and 125 The Terrace (up 13.0 per cent to $50.3 million).
Growth was driven by strong market rents, firmer yields reflecting desirable market locations, strong lease covenants and cash flows, Mr Lang said.
State Insurance Tower and Mobil on the Park in Wellington, which Anzo purchased in May last year, increased in value by 8.8 per cent to $81.9 million and 7.1 per cent to $75.7 million, respectively.
"Anzo identified the Wellington office market as having strong investment fundamentals and our decision to invest in these properties and commit over $214 million of new investment in the city over the past 18 months has been rewarded," Mr Lang said.
Shares in Anzo were up a cent at 93c by late morning.
