Archive | AMP Capital Investors

Second Canadian pension fund buys into AMP property portfolio

The Canada Pension Plan Investment Board (CPPIB) – rebuffed by the Labour government when it tried to buy 40% of Auckland International Airport Ltd in 2007 – has joined another Canadian pension fund as 50% owner of the AMP Capital Property Portfolio.

The Canadian Public Sector Pension Investment Board (PSP Investments) bought what was then the 18-property AMP Capital Property Portfolio, an unlisted portfolio for institutional investors, from AMP Capital Investors (NZ) Ltd for $1.1 billion in 2014.

The portfolio now comprises 13 properties valued at $1.03 billion, including the Botany Town Centre & Manukau Supa Centre in Auckland and the St Pauls Square office building in Wellington, which is undergoing a $38 million refurbishment with a new 15-year lease to the Government on completion. AMP Capital still manages it.

AMP Capital portfolio manager Nick Cobham said yesterday the deal “underlines institutional investor confidence in the New Zealand economy & property market and positions AMP Capital to take advantage of growth opportunities both within the existing portfolio as well as through acquisitions.

“We are pleased to welcome another leading global investor into our diversified property portfolio. This is CPPIB’s first investment into New Zealand, taking the opportunity to invest in a quality diversified property portfolio that is well placed to continue to benefit from strong New Zealand economic fundamentals. Investors continue to be attracted to the stability of the domestic property market, which is supported by a range of government & private capital initiatives along with strong population growth.

“By introducing another investor into the portfolio, our current investor, PSP Investments, has a strong & likeminded partner. With both investors’ support, we can look forward to further improving investment returns as the portfolio participates in redevelopment and further acquisitions in the office & retail sectors in the near future.”

In 2008, Land Information Minister David Parker & Associate Finance Minister Clayton Cosgrove jointly declined the Canadian Pension Plan Investment Board’s application to buy 40% of Auckland International Airport Ltd. In essence, the ministers’ decision amounted to a statement that foreigners can’t just replace another investor in sensitive assets, they have to demonstrate a positive contribution beyond the norm.

The new deal is still subject to Overseas Investment Office approval.

Earlier stories:
11 July 2014: AMP Property sells $1 billion portfolio, NZ Super Fund looks for new investments
13 April 2008: Essence of airport bid refusal: Demonstrate a positive contribution

Attribution: Company release.

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AMP Property sells $1 billion portfolio, NZ Super Fund looks for new investments

AMP Capital Investors (NZ) Ltd has sold a $1 billion-plus portfolio of 18 properties held in the AMP Capital Property Portfolio – an unlisted portfolio for institutional investors – to Canada’s Public Sector Pension Investment Board.

It’s subject to Overseas Investment Office approval. Assuming the agreement becomes unconditional, settlement is expected to occur in September.

The portfolio includes the 60,000m² Botany Town Centre & 40,000m² Manukau Supa Centre in Auckland, and the 12,600m² 13-level PricewaterhouseCoopers Tower & adjoining Capital on the Quay retail facility in Wellington.

AMP said the transaction enabled investors to realise their long-term investment in the portfolio and reinforced the current confidence in New Zealand’s economy & property market.

Those investors include the NZ Superannuation Fund, holding a 29.69% stake, andthe AMP NZ Property Fund, which has $239 million of units, representing 93.5% of that fund.

The Guardians of NZ Superannuation’s chief investment officer, Matt Whineray, said the sale was timed to take advantage of favourable market conditions: “As a long-term investor, the NZ Super Fund has a greater ability than many investors to choose when to realise its investments. The opportunity to sell the portfolio to a single buyer was an attractive one.

“We are always looking to optimise the mix of investments in the fund with a view to maximising long-term returns. The sale proceeds will be invested in predominantly growth-oriented domestic & international investment opportunities.”

AMP Capital Property Portfolio general manager Stephen Costley said: “This is a great result for all parties involved in the transaction. The vendors have realised their strategy to sell at a price that delivers value for investors, the purchaser is acquiring a quality, diversified property portfolio, AMP Capital retains its management of these assets and the transaction highlights the strength of the New Zealand economy & its status as an attractive investment destination.”

The buyer, PSP Investments, is one of Canada’s largest pension investment managers, with $C90 billion of assets under management last month. It has a target property weighting of 13%. It invests funds for the pension plans of the Canadian public service, the Canadian Forces, the Royal Canadian Mounted Police & the Reserve Force.

Attribution: AMP & Super Fund releases, AMP websites.

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Propbd on Q Th10July14 –$1 billion portfolio sold, Kiwi Income bonds, 2 units sell, Quay St design, Mangere Gateway

AMP Property sells $1 billion portfolio
Kiwi Income bond issue fully oversubscribed
2 apartments sell
Quay St design process starts, seawall being repaired
Homestead proposed as new venue for gateway visitor centre

5.10pm:
AMP Property sells $1 billion portfolio

AMP Capital Investors (NZ) Ltd has sold a portfolio of 18 properties held in the AMP Capital Property Portfolio and worth in excess of $1 billion, to Canada’s Public Sector Pension Investment Board.

AMP said the transaction enabled investors to realise their long-term investment in the portfolio and reinforced the current confidence in New Zealand’s economy & property market.

Kiwi Income bond issue fully oversubscribed

Brokers have taken up all of Kiwi Income Property Trust’s $100 million of 7-year fixed-rate senior secured bonds, plus $25 million of oversubscriptions.

After the bookbuild, the interest rate was set at 6.15%/year.

The offer to brokers’ clients opens tomorrow and closes on Friday 1 August. Investors will be paid interest from the time their application is banked.

2 apartments sell

2 cbd apartments sold under the hammer at Ray White City Apartments’ auction today, but there was no bid on the third property offered. Auction results:

Columbia, 15 Whitaker Place, unit 17H, sold for $136,000, sales agents Damian Piggin & Daniel Horrobin
Grand Chancellor, 1 Hobson St, unit 409,no bid, Mitch Agnew
Heritage Farmers, 35 Hobson St, unit 605,sold for $230,000, Dominic Worthington
Link to full details: Columbia & Heritage Farmers units sell

Quay St design process starts, seawall being repaired

Auckland Council will issue a request for expressions of interest today for design proposals on a future Quay St.

The council has also discovered remedial work needs to be on the sea wall between Princes & Marsden Wharfs, which might fail “in a moderate seismic event”.
Link to more detail: Council starts Quay St design proposals process, seawall repairs begin

Homestead proposed as new venue for gateway visitor centre

Auckland Council will investigate establishing a Mangere Gateway visitor centre at the Rennie homestead, on a side road near Auckland International Airport, 2 years after approving construction of the centre in the Otuataua stonefields but not proceeding.
Link to more detail: Council to investigate homestead for gateway visitor centre, but only after debate on funding & possible longer deferral

Attribution: Company releases, Auckland Council, auction.

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Beverley ends 20 years as AMP property executive, looks for new horizons

Published 24 February 2011

AMP Capital Investors (NZ) Ltd’s head of property, Anthony Beverley, will leave the organisation next Friday, 4 March – 20 years to the day after he started work there.

His role will become redundant in a reorganisation under which New Zealand asset line chiefs will report directly to AMP Capital Investors’ head office in Sydney. The change accords with his wishes when he took on the job and will allow him to move into governance roles outside AMP. He’ll retain directorships at AMP NZ Office Ltd, its manager, AMP Haumi Ltd, and Property For Industry Ltd.

Mr Beverley took over as head of property in New Zealand in 2005, when AMP created an alternative assets business under former property chief Murray Gribben, investing private equity in property & infrastructure. The alternative assets team was disbanded at the end of 2008 and Mr Gribben joined Mark McGuinness’ Willis Bond & Co Ltd in Wellington. He’s also been appointed a director of Kiwibank Ltd & NZ Post Ltd.

Along with the end of the alternative assets business and opportunity fund locally, AMP Capital began making changes internationally in 2008.

“I’d been head of property and was keen on a change. In late 2008, AMP Capital had been creating a global operations model, with plans to expand into Asia and each regional office reporting into the Sydney head office directly on an asset class line,” Mr Beverley said in an interview last week.

When the alternative assets team was disbanded at the end of 2008, New Zealand executives returned to reporting into the asset class divisions within head office. “At that time I was working with Andrew Bird, director of property in head office, and he asked me to do head of property again for a 2-year stint. Over those 2 years we’ve been realigning the New Zealand business.

“Progressively our property fund team has been relocating from Wellington to Auckland and we’ve been relocating most of the direct property fund.

“We recruited Scott Pritchard (from Goodman Property (NZ) Ltd in Auckland, as chief executive of the transformed AMP NZ Office Ltd) and used that opportunity to relocate the AMP NZ Office team to Auckland. Now all our fund management team is based in Auckland.

“Chief operating officer Simon Urquhart-Hay & I were still based in Wellington, but you can’t have your leaders in Wellington and your operations in Auckland. Andrew Bird decided he wasn’t going to have a head of property in New Zealand and to use this change for the fund managers to report to their equivalent in Australia to further integrate the 2 businesses.

“Our ambition in AMP Capital is to have a single asset management discipline & approach all around the world, so if anybody puts a dollar with us he knows he’ll get a consistent discipline of management. So the value of this move is to bring the Australian fund management operation to New Zealand and make sure our disciplines are moulded into it. More than ever, there’s a closer relationship.

“When we were doing the PWC Tower in Auckland, AMP Capital was the manager and the AMP NZ Office Trust (now AMP NZ Office Ltd) was the investor & developer. We were reporting to Australia and it was a much more formal reporting line. This is more designed to be an integrated operation.

“Stephen Costley, running the direct investment fund, will report to Chris Judd, head of property finance for AMP Capital in Sydney. Ross Blackmore, who runs Property For Industry Ltd, will also report directly to Chris Judd.”

Unlike them, AMP NZ Office chief executive Mr Pritchard will continue to report to AMP Haumi Management Ltd, a partnership between AMP Capital and the Abu Dhabi Investment Authority.

For Mr Beverley, it’s time to get on his bike and ride into the sunset, but without getting too far away: “I came from a full-time multi-sport background – took on the Xerox Challenge in 1990, 21 days from Cape Reinga to Bluff and got that out of my system. I’d done a masterate in property at Lincoln, then went into the Valuation Department to get registered as a valuer in 1987. There were no investment tools. I left to train for multi-sport but also to develop a computer package called Protege, sold a couple but the market had died and it wasn’t successful.

“Then I got into AMP, first as a valuer, then in asset management, portfolio management & funds management. I was in the team that took AMP NZ Office Trust to listing in 1997, and shifted within AMP to investment & governance roles.

“After the change of the trust management company, AMP want me to remain as AMP Capital’s man on PFI and I will continue to chair AMP Haumi Management.”

Outside those links, though, Mr Beverley is broadening his horizon in governance, not necessarily in property companies: “I joined Marlborough Lines Ltd, a community-owned entity, in September 2009 as a director. I will stay in Wellington, with a bach in the Sounds.

“The whole of governance is of interest to me. It’s an area I want to develop. I like getting involved in companies’ strategies. I’m quite fortunate in the position I’ve been in at AMP Capital, at PFI and with big powerful entities.

“I don’t want to jump straight back into an executive role – but I’m keen to do consulting on this area I’ve got a background in.”

Is he interested in property investment on his own account? “I’m an investor already, got a little farm, had a vineyard which we’ve sold. My passion is agriculture, that’s something I’ll be dipping my toe into. I’d like to get involved in the agriculture sector on a corporate basis.

“I’m 50, going on 21. I’m not retiring, just changing what I do. I’ve got new hips, I don’t run any more but I spent an irrational amount of money on a bike recently. And I’ve got into free-diving.”

Want to comment? Go to the forum.

 

Attribution: Interview, story written by Bob Dey for the Bob Dey Property Report.

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AMP suspends property fund redemptions

Published 3 August 2008

AMP Capital Investors (NZ) Ltd has suspended redemptions from, and won’t accept new applications into, the unlisted AMP Capital NZ Property Fund, AMP Capital managing director Murray Gribben said on Friday.

 

The $419 million fund was taken over in March by AMP Capital Property Portfolio Ltd – the insurance & investment group’s main holding company for unlisted property investments. After putting the NZ property fund under its wing, the portfolio company had $1.6 billion of assets at the March balance date.

 

Mr Gribben said: “We’ve taken this action as a prudent response to the current extraordinary market conditions that have resulted in higher than usual redemptions in the fund, not matched by fresh investment.

 

“AMP Financial Services NZ has placed the AMP Capital NZ Property Fund on hold from its approved product & services list, effective immediately. This affects both availability on the Wrap, as well as the 2 AMP property funds that invest in the AMP Capital NZ Property Fund – SIP Unit Trust Property Fund & SIP PRP Property Fund.

 

“This is an issue that is specific to the AMP Capital NZ Property Fund & the satellite retail funds invested in it. No other AMP investment vehicles are impacted.”

 

Mr Gribben said the fund had investments in the AMP Capital Property Portfolio and some listed property trusts: “The underlying property assets held in APP continue to comprise a high quality, nationwide portfolio of assets that are strongly diversified by location & property type. The portfolio has 96% occupancy and includes the Government sector as the single largest tenant on long-term leases.”

 

The fund is permitted to suspend redemptions for up to one year, though Mr Gribben said AMP Capital would lift suspensions as soon as market conditions improved enough. “After suspension is lifted, the usual redemption provisions – which provide for a period of up to 2 years – apply.

 

“Because property is a long-term investment and the assets are not immediately realisable, these types of provisions are common to these types of funds to ensure that the interests of investors are protected during periods of market volatility.

 

“In the current market, where investors are looking to reduce their exposure to property investments, we believe we are acting in the best interests of investors by temporarily suspending activity to preserve the quality of the fund.”

 

AMP NZ Office Trust chief executive Rob Lang said the listed trust was a separate entity from the unlisted fund and the fund suspension would have no effect on the trust’s performance, operations, investments & the ability of investors to freely trade in its listed securities”.

 

Want to comment? Email [email protected].

 

Attribution: AMP releases, story written by Bob Dey for The Bob Dey Property Report.

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AMP property strong, but diversified funds still negative for quarter

Published 29 April 2008

AMP Capital Investors Ltd’s New Zealand property investments performed strongly in the March quarter, but the company’s diversified funds made negative returns.

 

Investment strategy head Leo Krippner said today AMP Capital Investors “continues to take a reassuring & steady approach to handling its investors’ funds during this tough time for markets.

 

“New Zealand property performed very strongly for the quarter with an outstanding 10.4% result (27.4% for the year to March). However, when included with other growth assets – global & New Zealand equities (hedged & unhedged performed poorly) – and even with cautious portfolio asset allocation, returns were negative for the diversified funds for the March quarter.

 

“AMP Capital’s conservative diversified fund returned -0.1% for the quarter & 4.7% for the year, its balanced diversified fund returned -4% for the quarter & 0.4% for the year, and its growth diversified fund returned -6.7% for the quarter & -2.6% for the year.

 

“Although history tells us that long-term savers benefit from riding through the short-term ups & downs, KiwiSavers will have to be very honest with themselves about their own appetite for risk and their psychological capacity for bearing short-term losses to allow this to work for them.

 

“Hence, we hope KiwiSavers will remain focused on the well established benefits of a disciplined long-term savings & investment strategy and we will try our hardest to convince them to stick with it.

 

“For our part, we have been deliberately streamlining the portfolios to absolutely minimise the potential for ‘unexpected surprises’.”

 

Want to comment? Email [email protected].

 

Attribution: Company release, story written by Bob Dey for this website.

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PFI’s Alexander to head AMP’s new opportunity unit

New unit will seek higher-risk investments to turn over

Property For Industry general manager Peter Alexander is to head an “opportunist” property investment unit for AMP Henderson Global Investors, in the style of 3 opportunity funds AMP has set up in Australia.

The Australian funds target wholesale investors, but the New Zealand version is likely to attract retail investment as well.

Their aim is to secure properties for resale at high returns, probably in the region of a 20% return on equity.

That can’t be done the way AMP’s investment structure is now. In New Zealand, AMP Henderson Global Investors manages PFI, New Zealand’s only listed industrial property investor, the listed AMP NZ Office Trust and the recently renamed AMP Property Portfolio, an unlisted wholesale fund with a diversified portfolio.

None of those entities allows for higher-risk-taking investment.

To get higher returns, the new property ventures unit is likely to enter joint ventures with developers such as Willis Bond, which is in a 50:50 venture with AMP in the Hub, opposite AMP’s Botany town centre. The town centre is a major project which brought in AMP investment from across the Tasman (the AMP Diversified trust has a stake), whereas the Hub has proved a highly successful smaller development, with all its units sold at strong yields.

Willis Bond & Co director Malcolm McDougall was instrumental in forming PFI and followed that with the formation of CBD NZ Ltd, a listed office property investor which didn’t attract enough investment to survive. Mr Alexander was employed there, moving to PFI 5 years ago on the demise of CBD. He will remain at PFI until a replacement is found.

AMP Henderson’s head of property, Anthony Beverley, said the property ventures unit was an outcome of the company’s “core and satellite” approach to property investment. The unit will identify new high-margin property investment & development opportunities for AMP Henderson and its clients in New Zealand.

Mr Beverley said this approach to property investment was employed widely in overseas markets, providing an opportunity for greater returns & diversification.

AMP’s core property activities are conventional real estate investments such as office, industrial & retail property, with a focus on yield-based returns. He said satellite activities were more opportunistic, targeting a higher return and, accordingly, accepting a greater risk.

The core property investments all had established track records of delivering reliable yield-based returns to investors. “However, AMP Henderson is also aware of a range of higher risk/return opportunities which do not fit the well defined investment mandates & risk profiles of the core funds.

“The AMP Henderson property ventures unit will focus mainly on ‘satellite’ activities, and will operate across all property types & transactions, taking advantage of our existing deal flow and our expertise in investment & development.”

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AMPAM sells portfolio management to JLL

AMP relinquishes role, says investment management is its forte

AMP Asset Management (AMPAM) has relinquished its property management role to concentrate on managing investment.

Jones Lang LaSalle will take over management of the $900 million property portfolio from 31 July.

AMPAM’s acting head of property, and general manager of the AMP NZ Office Trust, Anthony Beverley, said today AMP had spent two months evaluating the property services market and reviewing the capacity of the major providers before awarding the three-year outsourcing contract to Jones Lang LaSalle.

All existing AMPAM staff have been offered positions at Jones Lang LaSalle under their current terms and conditions.

AMPAM contracted out the facilities management and maintenance services of its property portfolio last year. Mr Beverley said AMPAM Property’s core role was property investment, so by contracting out the management it could concentrate on adding value.

This contract increases by nearly 50%, to $3 billion, the property Jones Lang LaSalle has under management.

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AMPAM reshuffle

AMPAM reshuffle
Beverley holds top AMP property job
AMP Asset Management (AMPAM) has appointed Anthony Beverley head of property for New Zealand, a position he held temporarily after James Larkin moved to AMP in Australia.
Mr Beverley’s confirmation in the top slot comes in a reshuffle of AMPAM’s property team. He was previously executive manager of the AMP NZ Office Trust, a position now taken by the trust’s asset manager, Robert Lang.
Ian Pike moves from sales & acquisitions manager to business development & distribution manager. Peter Alexander remains manager of Property For Industry. He moved to AMPAM when it took over PFI’s management contract.
AMPAM’s New Zealand property portfolio totals $1.4 billion, in Australia it has more than $A15 billion under management and in both countries it is the largest property investment company.

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