DNZ Property Fund, whose shares are trading at a seven-month high, agreed to buy a Bunnings Warehouse property in Auckland’s Mt Roskill for $24.5 million, while selling an office tower in Wellington for $20.3 million.
The Auckland property is leased to retailer Bunnings for 15 years with five yearly market reviews of rent, DNZ said in a statement today.
The DIY chain is DNZ’s biggest tenant, and the latest acquisition will see Bunnings contributing about 10 percent of the property investor’s rental income. That’s at the upper limit of DNZ’s investment risk management strategy, it said.
DNZ separately sold an office building at 3-11 Hunter Street in Wellington. Both deals settle in March.
Shares of DNZ rose 0.4 percent to $1.31 on the NZX today, a level it touched on Jan. 31 for the first time since July 11 last year.