DNZ Buys Silverdale Centre

DNZ Buys Silverdale Centre

DNZ Buys Silverdale Centre 24/04/2013

DNZ Property Fund Limited has unconditionally agreed to purchase the Silverdale Centre, at 61 Silverdale Street, Silverdale, Auckland, for $78 million reflecting a forecast initial yield on settlement of 7.2%.

Paul Duffy, Chief Executive of DNZ said “The Silverdale Centre’s retail mix is predominantly established national chains with a strong convenience element. Located adjacent to the Millwater residential development, this is an exceptional opportunity for DNZ to invest in a retail centre in one of New Zealand’s fastest growing residential catchments.”

The Silverdale Centre comprises 36 bulk and specialty retailers including Warehouse Stationery, Noel Leeming, Number One Shoes, Supercheap Auto, Postie, Lighting Plus, Beds R Us, OPSM, ANZ and BNZ, anchored by The Warehouse and a Countdown supermarket. The Centre comprises 22,978m2 of retail floor area, 980 on-grade and basement car parks and a Weighted Average Lease Term (WALT) of approximately 10 years.

Situated on a 7 hectare site, and completed in October 2012, the Silverdale Centre is located adjacent to the existing Silverdale township and the master planned Millwater residential development. Millwater is projected to comprise over 3,000 dwellings and over 10,000 residents on completion.

On settlement, the acquisition of the Silverdale Centre will move DNZ’s retail portfolio weighting by contract rental1, including bulk retail, from 39% to 44%, and also moves DNZ’s Auckland weighting by contract rental1 from 49% to 53%. This acquisition forms part of DNZ’s strategy of increasing the weighting of the portfolio in the Auckland region.

Settlement is expected to take place on 1 July 2013. If fully bank funded, the acquisition would move DNZ’s Loan to Value Ratio (LVR) from 36.9% as at 31 March 2013 to 42.6%.

Tim Storey, DNZ Chairman, said “The Board intends to review the funding options that are available. These include utilising bank debt facilities, raising capital and/or asset sales. This acquisition is expected to be earnings accretive from settlement, to what extent is however dependent upon the choice of acquisition funding.”

¹Contract Rental is the amount of rent payable by each tenant, plus other amounts payable to DNZ by that tenant under the terms of the relevant lease as at 31 March 2013, annualised for the 12 month period on the basis of the occupancy level for the relevant property as at 31 March 2013, and assuming no default by the tenant.

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

Paul Duffy, Chief Executive, DNZ Property Fund Limited
DDI: 09 913 1154 – Mobile: 021 843 758 – Email: [email protected]

Jennifer Whooley, Chief Financial Officer, DNZ Property Fund Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – 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 the main urban areas throughout New Zealand. As at 31 March 2013, DNZ Property Fund owned 48 properties with 258 tenants, a weighted average lease term (WALT) of 5.2 years and an occupancy rate of 99.6% over a net lettable area of 354,502m².

DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internal management team. DNZ also holds management rights to Diversified NZ Property Fund Limited, a $105 million (as at 31 March 2012) commercial property portfolio.

DNZ’s top 10 tenants as at 31 March 2013: Bunnings, Fletcher Building, NZ Government, Progressive Enterprises (Countdown), Foodstuffs (PAK’nSAVE & New World), ASB, Westpac, Meridian Energy, Lion and Mitre 10. These 10 tenants represent 52% of the Company’s total contract rental.

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