Unit-holder alignment initiatives announced

News release – October 22, 2009

AMP NZ Office Trust announces unit-holder alignment initiatives

The Manager of AMP NZ Office Trust (ANZO), New Zealand’s largest listed investor in prime commercial office property, has today issued a statement outlining the progress of new initiatives aimed at enhancing the alignment between the Manager of ANZO and ANZO’s unit-holders.

The initiatives include considering the transition to a new management fee model.

Craig Stobo, the chairman of ANZO’s Manager, AMP Haumi Management Limited, said that increasing the alignment between unit-holders and the Manager made sense.

The AMP Haumi Management Limited board has been considering – partly in response to feedback from unit-holders – the transition from the current management fee, which is based on the value of ANZO’s assets, to a lower base fee plus performance fee. The Board is philosophically aligned with such a proposal; however, some aspects require further consideration. The Board aims to report back to investors with the outcome of its review as part of the Interim Result reporting in early February.

The Manager will also undertake a review of the appropriate corporate governance model to apply to ANZO, which will ascertain how to improve alignment of interests with those of unit-holders.

The Manager recognises the opportunity cost borne by unit-holders as a result of the slower than expected leasing success of 21 Queen Street. To reflect this it has decided to initially reduce its management fee by 50 percent. The fee will progressively increase to normal levels in proportion to the net lettable area leased, up until 75 percent occupancy is achieved, when the full normal management fee will apply.

Alignment measures already in place include:

• A Long-Term Incentive Scheme for management which will see the management team members allocated units in ANZO as part of their overall remuneration on achievement of certain performance targets.

• Two independent directors on the Board, one of whom is the chairman

• A cornerstone 19.9% investment in ANZO units by Haumi, one of the management company’s joint venture partners. Haumi also fully supported ANZO’s renounceable rights issue earlier this year.

The Manager has also welcomed the new Securities Commission disclosure recommendations which require an additional note to the financial statements outlining key employee remuneration.

ANZO is managed by AMP Haumi Management Limited.

About ANZO

ANZO is New Zealand’s largest listed investor in prime and A-grade commercial office property. A unit trust listed on the New Zealand Exchange, ANZO currently owns 15 New Zealand office buildings with a total gross value of more than $1.3 billion – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, 151 Queen Street, AMP Centre and 21 Queen Street; and Wellington’s State Insurance Tower, Vodafone on the Quay, HP Tower, 125 The Terrace, No. 1 and 3 The Terrace, Pastoral House, Mayfair House, AXA Centre, Deloitte House and 29 Willis Street (Chews Lane).

ENDS

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