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ABN AMRO, McConnell Property partner in business

Auckland, 28 February 2008

ABN AMRO New Zealand and McConnell Property partner to create a new integrated property development and investment business

ABN AMRO New Zealand and McConnell Property have today announced a partnership that will strategically combine ABN AMRO’s investment banking and McConnell Property’s development expertise to establish an integrated property and funds management business in New Zealand.

Under the partnership, ABN AMRO will take a 36% stake alongside McConnell Property with the option to increase to 49% over time. The partnership will allow McConnell Property to expand its business while giving ABN AMRO the opportunity to build the bank’s development and funds management activities as part of its broader Australia and New Zealand property strategy.

Both parties consider the partnership to be timely in light of significant opportunities emerging in the New Zealand property market and expected growing investor appetite for property fund investment as superannuation volumes increase in New Zealand.

“We consider this a prime time for investors to access high quality, long-term property development opportunities in New Zealand,” says McConnell Property Chief Executive Martin Udale. “Up until now, the market’s limited capital reserves have denied many investors the opportunity to access property development and investment opportunities. However, the recent changes to the superannuation environment will open up investment opportunities.”

McConnell Property will seek to leverage the different skills of the two market-leading organisations to carry out significant developments across the entire property development cycle from green-fields to investments and assets under management.

“Together we share a vision of an integrated property business that delivers value over the long-term, not just the development phase,” continues Udale. “We will use our expanded business platform to provide a comprehensive, long-term value chain, sourcing development opportunities, raising funds and managing investments that provide long-term income.”

ABN AMRO New Zealand Chief Executive Simon Allen adds, “Teaming up with McConnell Property allows us to participate in the expanding New Zealand property and investment market. We want to play an active role in the property sector and consider it timely to invest in the complete property development cycle in partnership with one of the market’s best developers.”


Notes to Editors:

ABN AMRO was named ‘Best Investment Bank in New Zealand’ in both 2006 and 2007 in the FinanceAsia Achievement Awards.

Netherlands-based ABN AMRO is a prominent international bank with total assets of EUR 1,120.1 bln (as at 30 June 2007). It has more than 4,000 branches in 53 countries, and has a staff of more than 99,000 full-time equivalents worldwide.

ABN AMRO was acquired by the Consortium of RBS, Fortis and Santander in October 2007 and its various businesses will be divided among the three banks.

McConnell Property
McConnell Property is a division of McConnell Group, one of New Zealand’s largest privately owned construction, property and infrastructure groups.

McConnell Property is one of New Zealand’s largest master plan developers. The organisation’s projects focus on industrial, commercial, residential, retirement and mixed use developments.

Established in 1998, the McConnell Property business has currently under construction developments with a completed value of over $750 million.

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