05 Jul DNZ Secures Foodstuffs for 18 Years
DNZ Secures Foodstuffs for 18 Years 5/07/2011
DNZ Property Fund announced today that it has purchased three Foodstuffs supermarkets located in Wellington, Napier and New Plymouth for $40.73m, with settlement scheduled for 20 September 2011.
Paul Duffy, Chief Executive of DNZ, said “This transaction secures the strong tenant covenant of Foodstuffs for DNZ, with new long term leases in three strategic regional north island locations that have excellent growth potential.”
The new 18 year leases contain fixed annual increases with market reviews every five years.
The acquisition will be funded by a selected asset divestment programme which is already in progress, supported by bank debt to maintain the Company’s bank loan to value ratio in the low 40% range.
Mr Duffy further noted “This transaction enhances the Company’s portfolio, adds another quality tenant, further improves the portfolio’s strong weighted average lease term and provides contracted income growth in the future for DNZ Property Fund shareholders.”
For Further Information Please Contact:
Paul Duffy, Chief Executive, DNZ Property Fund Limited
DDI: 09 913 1154 – Mobile: 021 843 758 – Email: firstname.lastname@example.org
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.