Increase in Offer Price by AMP Property

Capital Properties New Zealand Limited
Level 11, The Bayleys Building
Cnr Brandon Street & Lambton Quay
PO Box 1690, Wellington
New Zealand

28 October 2005

Increase in Offer Price by AMP Property Portfolio Investments Limited

Earlier today AMP Property Portfolio Investments Limited ("AMP Property Portfolio") announced that was increasing the consideration under its full takeover offer for Capital Properties New Zealand Limited ("Capital Properties") from NZ$1.42 to NZ$1.48 per share.

Tony Frankham, the chairman of the independent directors' committee of Capital Properties, noted that the increased price was at the very bottom of the fair value range determined by Deloitte, the independent adviser appointed by the committee to report on the merits of the offer. "Deloitte expressed the opinion that the fair value range for Capital Properties shares was $1.48 to $1.73 per share, with a mid point of $1.60", Mr Frankham said.

Mr Frankham said that the independent directors' committee would consider the revised offer and provide a further recommendation to shareholders. "In the meantime, it is not recommended that shareholders take any action in relation to this revised offer", he said.

ENDS

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