Limited Capital Raising for DNZ Property Fund

Limited Capital Raising for DNZ Property Fund

Limited Capital Raising for DNZ Property Fund 8/06/2010

DNZ Property Fund chairman Tim Storey today confirmed the Company is considering a $35 million capital raising and will put the matter to shareholders for approval at the Annual Meeting, with the date and venue to be finalised shortly

Mr Storey said that following recent meetings with shareholders and shareholder representative groups, the Board considers it appropriate to undertake a small capital raising that would be made available as a priority to all existing shareholders.

“The feedback we received from the shareholder meetings was a preference for a smaller capital raising that would be accessible to as many shareholders as possible.” said Mr Storey. ”Shareholders also indicated the structure of the capital raising should also minimise the dilution affect for those who do not take part in the capital raising.”

“With those parameters in mind the Board has settled on a $35 million pro rata offer to be made to existing shareholders followed by a book build for shares not subscribed for by the Company’s existing 8,000 plus shareholder base. This offer structure had been designed to enable maximum participation by existing shareholders with the funds raised to be used to reduce the company’s debt levels.”

“We believe this capital raising initiative will be supported by Shareholders.”

Further details on the capital raising will be available in the Notice of Annual Meeting that will be sent to shareholders shortly.

Important Notice: No money is currently being sought in connection with any such offer and no applications for securities will be accepted or money received unless the subscriber has received an investment statement.

For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: [email protected]

DNZ Property Fund Overview
DNZ Property Fund Limited owns one of New Zealand’s largest diversified investment property portfolios with commercial office, retail and industrial properties located in major urban areas throughout New Zealand.

As at 31 March 2010 DNZ Property Fund owned 58 properties with 272 tenants, a weighted average lease term (WALT) of 4.7 years, an occupancy rate of 95.6% over a net lettable area of 397,696m², net contract rental Income of $56.3m with a portfolio value of $700.1m.

DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares that are traded on Unlisted. DNZ Property Fund Limited is managed by DNZ Management Limited, part of DNZ Property Group.

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