Diversified NZ Property Fund Limited to purchase two shopping centres

Diversified NZ Property Fund Limited to purchase two shopping centres

Diversified NZ Property Fund Limited to purchase two shopping centres 27/11/2015

 

Stride Property Limited (Stride) manages Diversified NZ Property Fund Limited (Diversified), a wholesale investment vehicle.

Diversified has entered into an agreement to acquire the Westfield Queensgate shopping centre, Wellington, and the Westfield Chartwell shopping centre, Hamilton, from entities owned by Scentre Group (ASX:SCG) for $445m. The acquisition is subject to the approval of the Overseas Investment Office.

The growth of funds under management in Diversified is consistent with Stride’s communicated objective to expand its Real Estate Investment Management activity.

 
Stride receives fee income for managing the assets of Diversified. The key terms of the management agreement include an asset management base fee of 0.6% up to $750m of funds under management and thereafter 0.5%. Additional fees earned in relation to the management of the acquired assets will include leasing fees, disposal fees, performance fees, development fees and centre management fees. Whilst the transaction will result in additional management income to Stride, there will also be additional costs, including for resourcing, involved in managing the increased portfolio.

Stride owns approximately 2% of the convertible notes in Diversified and will contribute up to $6m of capital to complete the acquisition. Settlement is expected to occur in the second quarter of the 2016 calendar year subject to the approval of the Overseas Investment Office. Settlement of the acquisition is expected to occur in a restructured investment vehicle, which will continue to comprise the existing investors and be managed by Stride.

The transaction is not expected to impact Stride’s previously provided guidance for dividends for this financial year given the expected timing of settlement.
 


 
For Further Information Please Contact:
Tim Storey, Chairman, Stride Property Limited
Mobile: 021 633 089 – Email: tim.storey@strideproperty.co.nz

Peter Alexander, Chief Executive, Stride Property Limited
DDI: 09 913 1154 – Mobile: 0275 443 678 – Email: peter.alexander@strideproperty.co.nz

Jennifer Whooley, Chief Financial Officer, Stride Property Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – Email: jennifer.whooley@strideproperty.co.nz

Stride Overview
Stride Property Limited (‘Stride’), formerly known as DNZ Property Fund Limited, owns one of New Zealand’s largest diversified investment property portfolios with $1,236.3m (value as at 30 September 2015 of $949.3m and the subsequent $287m acquisition of the 19 Large Format Retail properties) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand.

Stride sells Property in Napier
Stride sells Industrial Property in Grey Lynn, Auckland