26 Aug DNZ Announcement Regarding MFL Decision
DNZ Announcement Regarding MFL Decision 26/08/2011
DNZ has continued to evaluate the Argosy merger and as part of its assessment has engaged with interested parties.
Argosy’s major unit holder, MFL, has now stated that the internalisation of Argosy is the path they wish to proceed with. This matter is now before Argosy unit holders to decide at the AGM on 30th August 2011 (as it should be, in terms of good governance).
On the basis that the Argosy internalisation proposal is passed by unit holders, there will be substantial costs incurred and the future benefits of the merger proposal with DNZ would be reduced considerably. On this basis, DNZ would withdraw its current merger proposal.
If Argosy unit holders vote against the internalisation this will ensure Argosy unit holders preserve the opportunity to consider a merger proposal with the associated benefits of avoiding the substantial costs involved with internalisation and the set up of a new management company.
DNZ hopes unit holders will consider the benefits that could be available if a merger with DNZ were to be progressed by Argosy instead of internalisation. If the internalisation proposal is rejected, DNZ is committed to engaging promptly and constructively with Argosy directors and management with a view to developing a merger proposal to be put to Argosy unit holders promptly with a view to finalising the merger by November 2011.
Such a proposal would seek to avoid the substantial and unnecessary cost of the current internalisation proposal, improve governance and provide Argosy unit holders access to a premium and higher distributions through lower ongoing costs.
If at any future point the DNZ merger is able to be progressed, Argosy unit holders would be provided with a Simplified Disclosure Prospectus. This would be part of the information provided to unit holders prior to seeking the approvals for any merger proposal. At this time no DNZ shares are available for subscription by any Argosy unit holders and, for the avoidance of doubt, at this time no money is currently being sought and no applications for DNZ shares will be accepted or money received.
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: email@example.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 30 June 2011, DNZ Property Fund owned 50 properties with 285 tenants, a weighted average lease term (WALT) of 4.5 years, an occupancy rate of 98% over a net lettable area of 372,279m², and a portfolio value of $638m (31 March 2011 valuations).
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.