Trust Acquires Balance Of National Bank Centre

NZX & MEDIA RELEASE

1 November 2006

Trust Acquires Balance Of National Bank Centre

Kiwi Income Property Trust announced today that it has exercised its pre-emptive right and unconditionally acquired the remaining 50% of the National Bank Centre in Auckland for $55.6 million.

The 26,146m2 building, completed in 1990, comprises two office towers, prominent ground floor retail premises, and basement carparking. The building is co-owned by AMP Property Portfolio Investments Limited (APPIL). The pre-emptive right held by the Trust to purchase the remaining 50% was triggered by an offer for APPIL’s share by an Australian investor. The acquisition price represents a market yield of 8.0%, and will be debt funded, with settlement in November 2006.

ANZ National Bank occupies approximately 42% of the office space, with leases until 2011. The retail component of the building accounts for approximately 30% of the building’s rental income and includes high profile retail space on one of Auckland’s busiest pedestrian corners.

Chief Executive of the Manager of the Trust, Angus McNaughton said that owning 100% of the building will provide the Trust with complete control over the management of the building.

“The quality ‘A’ grade building is well located, with good rental growth, a level of under-renting, and future opportunities to add value through a retail remix. The Auckland office market is extremely robust, with strong rental growth and firming yields. Opportunities to purchase a building of this calibre in a very competitive marketplace are limited,” Mr McNaughton said.

ENDS