05 Jun Purchases in Newmarket
DNZ Purchases in Newmarket 5/06/2015
DNZ Property Fund Limited (DNZ) has purchased an investment property at 35 Teed Street, Newmarket, Auckland for $17.0 million. The property, known as Heartland House, occupies a high profile site on the corner of Teed Street and Gillies Avenue, and is located immediately adjacent to DNZ’s property at 25 Teed Street.
The property is a retail, office and car park building including seven retail units, 1,498m² of office space over two upper levels and 103 car parks. The property has a weighted average lease term (WALT) of 5.5 years, made up of 8.5 years on the office space and 1.6 years on the retail space. The purchase price provides a yield of 7.0%.
“This acquisition fits well with our strategy” said DNZ Chief Executive Peter Alexander.
“This precinct in Newmarket is one of our preferred locations. Newmarket has extensive private and public transport links and excellent amenity. The acquisition is also immediately accretive to both earnings and WALT.”
Alexander also commented that the combined holdings provide opportunities to add value over the medium to long term.
The purchase will be funded from a combination of existing bank facilities and divestment of non-core properties. Settlement is scheduled for 30 June 2015.
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: [email protected]
Peter Alexander, Chief Executive Officer, DNZ Property Fund Limited
DDI: 09 913 1154 – Mobile: 0275 443 678 – 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 $872.4 million (as at 31 March 2015) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand. As at 31 March 2015, DNZ Property Fund owned 41 properties with 281 tenants, a weighted average lease term (WALT) of 5.1 years and an occupancy rate of 96.6% over a net lettable area of 334,694m².
DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internal management team. DNZ is also the manager of Diversified NZ Property Fund Limited, a $115.9 million (as at 31 March 2014) commercial property fund.
DNZ’s top 10 tenants as at 31 March 2015: Bunnings, Progressive Enterprises (Countdown), Foodstuffs (PAK’nSAVE & New World), ASB, NZ Government, The Warehouse, Fletcher Building, Westpac, Meridian and Lion. These 10 tenants represent 52% of DNZ’s total contract rental.