GENERAL: NZX: DNZ SETS PRICE FOR SHARE OFFER

11 Aug 2010 2:34 pm

NZX 11/08/2010 GENERAL

REL: 1433 HRS NZX Limited

GENERAL: NZX: DNZ SETS PRICE FOR SHARE OFFER

Following completion of the bookbuild process, the Board of DNZ Property Fund has set an Offer Price of $0.97 per Share for all investors in its Offer which opened on July 19.

All existing Shareholders who applied for their entitlement under the pro-rata and excess subscriptions offers received their full entitlement under the Offer. $8.25 million worth of Shares were allocated under those offers.

Shares not taken up by existing shareholders were offered through the bookbuild process and that was well supported by new investors. As a result of the demand and pricing outcome achieved, the Board exercised its discretion to accept an additional $10 million of applications.

The total amount of capital raised under the Offer was $45 million.

DNZ Chairman Tim Storey said the company had been very pleased with both the strong interest in the capital raising from existing shareholders and in particular from institutions that have taken up shares in the Offer. The strike price of $0.97 per Share is also pleasing as it is higher than where the share price was when last quoted on the Unlisted market.

"I think the level of interest and the price shows that there are very real benefits to moving to a NZSX listing by attracting new investors and this also clearly benefits our existing shareholders." says Mr Storey.

"The Board believes the price of $0.97 per Share has achieved an optimal balance for existing shareholders and new investors. The price is a reflection of the forecast dividend yield, underlying quality of the DNZ portfolio and the benefits of an internal management structure - a structure which currently is unique among the listed New Zealand property entities."

Shares offered under the Offer will be allotted on August 13. Shares will be listed on the NZSX (which is operated by NZX Limited, a registered exchange) on August 16 under the 'DNZ' stock code.

"The listing of DNZ shares on the main board of the NZSX is a significant step forward for the company and the Board thanks shareholders for their patience and support in achieving this significant step for our business. The company's internal management structure and its portfolio creates a solid platform for the company to maximise its performance and consequently its share price. The Board and management team are excited by the opportunity to take a leading role in the listed property sector."

Goldman Sachs & Partners New Zealand Limited acted as Lead Manager and Organising Participant.

NB: The Shares have been accepted for listing by NZX and will be quoted upon completion of allotment procedures. However, NZX accepts no responsibility for any statement in this announcement. END

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 Whangarei, Auckland, Tauranga, Hamilton, Rotorua, Palmerston North, Napier, Wellington, Nelson, Christchurch and Dunedin.

As at 31 May 2010 DNZ Property Fund owned 55 properties with 265 tenants, a weighted average lease term (WALT) of 4.5 years, an occupancy rate of 95.4% over a net lettable area of 379,779m2, net contract rental of $54.4m with a portfolio value of $671m (31 March 2010 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, which is owned by Australian institutional investors.

For Further Information Please Contact:

Tim Storey Chairman, DNZ Property Fund Limited Mobile: 021 633 089 www.dnzproperty.com End CA:00198233 For:NZX Type:GENERAL Time:2010-08-11:14:34:01

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