Property Trust Acquires Capital Properties Stake

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Thursday 18 November 2004

Press Release: Kiwi Income Properties Limited

By The Landlord

Kiwi Income Property Trust announced today it has reached a 19.9% interest (inclusive of shares held by associates) in Capital Properties New Zealand Limited (CNZ), at a cost of $53.4 million. The acquisition is to be debt funded, and will be accretive for the Trust’s unitholders.

CNZ is a NZX listed commercial property company with total assets of $439.2 million as at

30 September 2004. The CNZ portfolio has a high level of exposure to the government sector (52% of total revenue) in Wellington and includes a substantial private sector office component (35% of rental revenue) which is largely in Auckland. CNZ also recently acquired a shopping centre in New Plymouth. The Trust and CNZ already have a relationship through their joint ownership of National Bank Centre, Auckland.Chief Executive of the Manager of the Trust, Angus McNaughton, said Kiwi Income Property Trust was a New Zealand based trust, primarily owned by New Zealand investors. The Trust viewed its investment in CNZ as a strategic stake in a complementary New Zealand property company.

“While the two businesses have many common characteristics, the investment offers the Trust exposure to different tenant and geographic sectors. CNZ’s high government sector weighting in particular is a unique strength.”

Mr McNaughton said the Trust looked forward to engaging in constructive dialogue with the CNZ board and management.

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