DNZ Buys Westgate Town Centre Land in Auckland’s Major Growth Node

DNZ Buys Westgate Town Centre Land in Auckland’s Major Growth Node

DNZ Buys Westgate Town Centre Land in Auckland’s Major Growth Node 14/05/2013

DNZ Property Fund Limited (DNZ) has signed a conditional agreement to purchase the development land comprising zone 5 of the proposed Westgate Town Centre development in the north-western growth suburb of Auckland for $25m. This development land has a resource consent granted to build an enclosed shopping centre of approximately 34,000m².

Paul Duffy, Chief Executive of DNZ, said “This is an exceptional opportunity for DNZ in one of Auckland’s major growth nodes. The opportunity to invest in a regional retail greenfields project which is zoned, and holds resource consent, is unique, and the centre is projected to be dominant within its catchment.”

Before looking to start development, DNZ will undertake considerable further work to fully develop the proposal and ensure project feasibility, including pre-leasing commitments and long term funding strategy. Any development will be undertaken within the company’s strategic objectives and guidelines.

The proposed Westgate Town Centre is a planned 56 hectare mixed use development. Within the Town Centre Auckland Council continues to invest in new infrastructure including a new library, community rooms, a bus interchange, parks, walkways, a town square and main street. In addition there are planned offices, restaurants, an enclosed retail mall, bulk retail and specialty retail, entertainment and accommodation facilities.

DNZ is purchasing only the zone 5 land for the planned enclosed retail shopping centre, and will then subsequently look to undertake the development of the project and own this as a longer term investment within DNZ Property Fund’s diversified property portfolio.

The purchase will be funded through bank debt within DNZ’s existing facility, and the Board is currently reviewing its longer term capital management options.

Settlement of the transaction will occur following the satisfaction of the following conditions, which are required to be satisfied by 27 May 2013:

  • the vendor satisfying DNZ that the part of the zone 5 development land held under contract with a third party has settled; and
  • a lease being granted and subsequently assigned to DNZ in respect of part of the zone 5 development land.

Provided that the conditions are satisfied, settlement will occur within 5 working days of new title being granted in respect of the Zone 5 land.

Further details on DNZ’s plans for this retail shopping centre development within the proposed Westgate Town Centre will be provided as part of the full year results presentation next week.

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]

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 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 $111 million (as at 31 March 2013) 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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