Full takeover of Capital Properties launched

Thursday 15th September 2005

AMP Property Portfolio (APP) has announced that it intends to make a full takeover offer for all the ordinary shares in Capital Properties.

The offer will be $1.42 cash per share. The offer of $1.42 is "generous and represents a very full price for CNZ" APP says.

It is at a substantial premium to comparable benchmarks, and is:

4% higher than the highest price at which CNZ shares have ever traded on the NZSX ($1.36)
8% higher than the NZSX closing price before the Offer was announced ($1.31)
10% higher than CNZ�s net tangible assets at last balance date of 31 March 2005 ($1.29)
24% higher than the average valuation of CNZ by four independent analysts
39% higher than the CNZ price on the NZSX in November 2004, before the corporate activity for CNZ shares began ($1.02).

The Offer is principally subject to APP holding 50% or more of CNZ�s voting rights (APP currently has a 15.7% stake in CNZ) and obtaining OIO consent on usual terms.

The acceptance level is set at the minimum required by the Takeovers Code. The Offer is scheduled to be open for only 30 days, opening on 30 September 2005 and closing on 31 October 2005.

�The intended offer for CNZ shares is consistent with our strategy of investing in quality New Zealand properties,� said Stephen Costley, General Manager, APP.

CNZ�s portfolio is primarily occupied by government and private sector tenants.

�CNZ�s portfolio of properties is complementary to APP�s own portfolio, and its weighting towards the Wellington region is also a positive feature for APP.

�Increasing our holding in CNZ will diversify our geographical spread, and increase our investment in this market,� Costley said.

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