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DNZ sells properties to repay bank debt

Tuesday 24th August 2010 1 Comment

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DNZ Property Fund, which listed on the NZX earlier this month, has completed the sale of two vacant industrial sites near the Auckland International Airport for $2.9 million.

The proceeds of the sale will be used to repay bank debt, the fund said in a statement today.

DNZ will incur a loss of $53,000 on the sale, with a $58,000 disposal fee, according to an offer document released by the fund in July ahead of its listing.

On August 16, DNZ’s shares debuted on the NZX at 99 cents, a premium to the 97 cent a share issue price in its $45 million capital raising. The shares rose about 2% to $1.04 today.

Of the new capital raised, $35 million was used to buy the management contract owned by chief executive Paul Duffy and Alastair Hassell, which had given them a right of veto over the investors' wishes.

DNZ was formed from 32 property syndicates, mostly single asset and/or single-tenant funds, established between 1996 and 2001.

DNZ owns a property portfolio worth about $671million and an agreement to manage Diversified NZ Property Fund whose portfolio is worth about $100 million.

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Comments from our readers

On 25 August 2010 at 9:38 am Ron Mason said:
What is Diversified N.Z.Property fund? Is it owned by the shareholders of D.N.Z Ron Mason (Trustee, Mason Family Trust)
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