DNZ Significantly Reduces FY12 Expiry Completing Over 39,000m² of Transactions

DNZ Significantly Reduces FY12 Expiry Completing Over 39,000m² of Transactions

DNZ Significantly Reduces FY12 Expiry Completing Over 39,000m² of Transactions 30/06/2011

DNZ Property Fund announces today that the management team, during the first quarter of the 2012 financial year, finalised a number of key lease transactions for over 39,000m² of the portfolio’s net lettable area.

 
A total of 28 new lease and lease renewal transactions have been concluded, representing $5.6 million in annualised contract rental.
Tim Storey, Chairman of DNZ Property Fund, said “The DNZ management team has again performed well for DNZ Shareholders in completing a number of key transactions. These transactions have significantly reduced the 2012 financial year expiry profile and further improved the portfolio’s solid occupancy rate that now stands at over 98%. This is a very positive start to the year, with the effectiveness of the management team and their focus on tenant retention clearly evident.”

Significant Lease Transactions include:

80 Greys Avenue, Auckland
— DDB – new 6 year lease over 5 levels or 3,659m² of office space
— Serato – new 6 year lease for 1,068m² of office space

25 Teed Street, Newmarket, Auckland
— New Zealand Association of Credit Unions – new 9 year lease for 819m² of office space

15 Ride Way, Albany, Auckland
— NZ Post – 6 year lease extension over 6,027m² of warehouse space

415 East Tamaki Drive, Auckland
— Goodyear & Dunlop Tyres has entered into a sublease from Chrisco Hampers for the 9,727m² warehouse\office facility through to expiry on 1 September 2015. Dunlop has also agreed a direct lease from DNZ on the property for an additional 5.5 year term from 2015.

Johnsonville Retail, Wellington (50% owned by DNZ Property Fund)
— ANZ Bank – 5 year lease extension for 375m² at 80 Johnsonville Road.
— Johnsonville Fitness – 6 year renewal for 1,254m² at 8 Broderick Road

3-11 Hunter Street, Wellington
— Canon – new 6 year lease over 337m² of ground floor showroom space

62 Columbia Avenue, Hornby, Christchurch
— General Distributors Ltd (Progressive Enterprises) – lease extension to 31 July 2012 for the 12,665m² distribution centre

Christchurch 13 June 2011 Earthquake Update

Following the 13 June 2011 earthquake in Christchurch, DNZ’s Winston Avenue, Papanui, property has suffered earthquake related damage. There was no damage to the other DNZ Christchurch asset at Columbia Avenue in Hornby.

Paul Duffy, CEO of DNZ Property Fund, said “Initial consultants’ reports indicate there has been damage to the Winston Avenue property that will require remedial works to be carried out. While we are not yet in possession of a detailed plan of works, we expect the building programme to be in the region of three months. A gradual release of floors will be possible, however, once all majorly disruptive works are completed over the next four weeks. Engineering consultants, Beca, are currently completing a three dimensional computer model of the building to ensure that these works will return the building to 100% of building code.”

The DNZ portfolio is fully insured for earthquake damage, including business interruption insurance for loss of rent, subject to agreed policy limits and restrictions. The two DNZ owned Christchurch properties constitute less than 3% by value of DNZ’s total portfolio.
 


 
For Further Information Please Contact:
Paul Duffy, Chief Executive, DNZ Property Fund Limited
DDI: 09 913 1154 – Mobile: 021 843 758 – Email: paul.duffy@dnzproperty.com

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 2011, DNZ Property Fund owned 50 properties with 283 tenants, a weighted average lease term (WALT) of 4.3 years, an occupancy rate of 98% over a net lettable area of 371,481m², and a portfolio value of $638m.

DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internalised management team. DNZ Property Fund Limited also manages the property portfolio of Diversified NZ Property Fund Limited for Australian institutional investors.

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