Not for release or distribution in the US

AMP Capital Global Direct Property Fund has acquired The Vintage at Zona Rosa, Kansas City in the United States in an off-market transaction for US$27.7 million.

The Vintage is a high quality 'multifamily'asset comprising 308 units in 13 separate apartment buildings and is currently 85 per cent occupied.

AMP Capital Fund Manager Tim Fallet said: 'We are pleased to re-enter the US multifamily market on such favourable terms. We were able to secure the property at a significant discount to replacement value and recent comparable sales in the market.

'The investment presents compelling opportunities to improve the asset and our focus will be on maximising occupancy and marking to market rents to increase the net operating income from the asset. At this point in the investment cycle property owners really need to focus on driving net income growth within their portfolios for out-performance rather than relying on continuing capital value growth from the broader market.

'This acquisition demonstrates continued execution of our strategy, with the recent sale of our Boston CBD office asset generating a total return for investors in excess of 26 per cent per annum and recycling capital into a high quality core-plus multifamily asset where we can continue to drive investment performance.

'As one of the few funds offering this kind of international core and core plus direct property exposure, our disciplined approach to buy and sell-side opportunities has seen investors enjoying double digit returns during the past six years.'

The Global Direct Property Fund provides Australian institutional investors with access to core and core plus direct property investment opportunities in large, liquid and transparent offshore markets. The fund invests in a strategic mix of international direct property assets across all the property sectors.

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