Westgate Mall over 77.5% pre-leased

Westgate Mall over 77.5% pre-leased

Westgate Mall over 77.5% pre-leased, 30 September 2014 Valuations and FY15 Q2 Portfolio Update 24/10/2014

Westgate Mall over 77.5% pre-leased
Portfolio Value increases by net 1.4% or $10.73m
DNZ Quarterly Portfolio Update – Second Quarter FY15

 
This announcement is to update the market on DNZ Property Fund Limited’s (“DNZ”) transactional activity and property portfolio statistics for the second quarter, being 1 July 2014 to 30 September 2014 of the 2015 financial year (FY15).

Peter Alexander, DNZ Chief Executive Officer, said, “A highlight of the quarter’s activities was the further progress with FY15 lease expiries. The percentage of contract annual rental expiring in FY15, reduced from 4.49% as at 1 July 2014 to 3.49% as at 30 September 2014 as a result of renewed leases and new leasing.”

Key transactions during the quarter include a new nine year lease to Fonterra over 1,304m² at 12 Tyers Road, Wellington, and IAG’s renewal for three years over 1,050m² at 7–9 Fanshawe Street, Auckland.

“We are making good progress at Westgate, with over 77.5% of budget rental now confirmed. We are receiving very strong interest from retailers, and construction is on schedule for opening in October 2015.”

“At Westgate, we have been working to include the best brands in each category and to give our customers a well-rounded shopping experience. We have already secured a strong fashion mix anchored by some iconic New Zealand and Australian brands. We have a comprehensive health and beauty offer, a full range of retail services and a food offer that will satisfy every appetite from our world-class food-court to café-style dining.”

DNZ is the developer of the enclosed regional shopping mall at Westgate in Auckland’s Northwest. The project has a net lettable area of 27,000m² and includes a Countdown supermarket, a Farmers department store and over 90 specialty retail stores.

12 assets were independently valued as at 30 September 2014, with the portfolio value increasing by a net $10.73m or 1.4% for the six month period on a like for like basis2.
 

Portfolio Overview

as at 31 March 2014as at 30 September 2014
Properties4645
Tenants292286
Net Lettable Area (m²)364,916358,307
Net Contract Rental1 ($ millions)61.261.0
Weighted Average Lease Term (years)5.55.4
Occupancy Rate (% by area)99.599.0
Portfolio Value ($ millions)780.2788.0

 

Lease Transactions

74 lease transactions were completed during the quarter, which included:

  • 49 rent reviews over 51,212m2 for a total annual rental of $12.2 million
  • 15 lease renewals over 4,136m2 for a total annual rental of $1.4 million
  • 10 new lettings completed over 3,162m2 for a total annual rental of $0.7 million

1. Contract Rental is the amount of rent payable by each tenant, plus other amounts payable to DNZ by that tenant under the terms of the relevant lease and annualised for the 12 month period on the basis of the occupancy level for the relevant property and assuming no default by the tenant.

2. The valuations of all properties disposed of during the 6 months from 1 April 2014 have been disregarded in this calculation.
 


 
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: tim.storey@dnzproperty.com

Peter Alexander, Chief Executive Officer, DNZ Property Fund Limited
DDI: 09 913 1154 – Mobile: 0275 443 678 – Email: peter.alexander@dnzproperty.com

Jennifer Whooley, Chief Financial Officer, DNZ Property Fund Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – Email: jennifer.whooley@dnzproperty.com

DNZ Property Fund Overview
DNZ Property Fund Limited owns one of New Zealand’s largest diversified investment property portfolios with $788.0 million (as at 30 September 2014) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand. As at 30 September 2014, DNZ Property Fund owned 45 properties with 286 tenants, a weighted average lease term (WALT) of 5.4 years and an occupancy rate of 99.00% over a net lettable area of 358,307m².

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 30 September 2014: Bunnings, Progressive Enterprises (Countdown), Foodstuffs (PAK’nSAVE & New World), ASB, NZ Government, Fletcher Building, The Warehouse, Westpac, Meridian and Lion. These 10 tenants represent 50.2% of the Company’s total contract rental.

* Twelve assets were independently valued as at 30 September 2014, are subject to final audit review and will be confirmed in DNZ Property Fund Limited’s interim consolidated financial statements for the six months ended 30 September 2014.

Extension of Bank Facility and renegotiation of line fees and margins
DNZ Announces New Officers