DNZ Successful Completion of $115 Million Placement

DNZ Successful Completion of $115 Million Placement

DNZ Successful Completion of $115 Million Placement 24/09/2015

 

DNZ Property Fund Limited (DNZ) is pleased to announce the successful completion of the $115 million placement of new shares undertaken today to partially fund the acquisition of a portfolio of large format retail assets for $287 million. The placement of 59,400,000 shares was fully subscribed at a price of $1.94 per share.

Settlement and allotment is expected on Wednesday 7 October 2015.

DNZ Chief Executive, Peter Alexander, said “The acquisition represents an attractive opportunity for DNZ to add a high quality portfolio to the existing fund that can create strategic value-added opportunities and we are pleased our shareholders and new investors have recognised this through their support of the capital raising.”

Tim Storey, Chairman of DNZ, added “Interest from our existing shareholders and new investors has shown strong support of DNZ’s business strategy and this exciting acquisition. We thank our shareholders who supported the capital raising and welcome the new investors onto the DNZ register. We look forward to extending an offer to our investors in New Zealand to give them the opportunity to participate through the Share Purchase Plan.”

Goldman Sachs New Zealand Limited acted as sole lead manager, placement agent, bookrunner and underwriter of the placement.

Details of the planned Share Purchase Plan, which is intended to raise up to $15 million, are expected to be sent to eligible New Zealand resident DNZ shareholders on 9 October 2015. The shares under the Share Purchase Plan will be priced at the lower of $1.94 per share (being the placement price) and the average end of day market price of the shares during the five working day period before the Share Purchase Plan is completed.

 


 

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 (“DNZ”) owns one of New Zealand’s largest diversified investment property portfolios with $890.9 million (as at 31 August 2015) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand. As at 31 August 2015, DNZ owned 42 properties with 294 tenants, a weighted average lease term (WALT) of 5.3 years and an occupancy rate of 99.6% over a net lettable area of 338,504m².

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 $118.4 million (as at 31 March 2015) commercial property fund.

DNZ’s top 10 tenants as at 31 August 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 50% of DNZ’s total contract rental.

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