DNZ Property sets date for listing

Wednesday 14th July 2010

DNZ Property Fund shares will start trading on the NZX on August 16 once it has completed its plan to raise up to $45 million in equity capital.

The actual price will be determined by an institutional book-build but DNZ has provided an indicative range between 80 cents and $1.05 a share.

Applications for the new shares will open July 19 and close August 4, with its existing 8,000 investors being offered up to $35 million. Any shortfall and up to $10 million will be offered to employees, institutions and primary market participants.

The listing and capital raising was approved last week by about 98% of existing investors and $35 million of the new capital will be used to buy the management contract owned by chief executive Paul Duffy and Alastair Hassell.

Last year, a proposal to raise up to $140 million, of which $43 million was to have been used to buy the management contract and which would have greatly diluted the existing investors, was shot down after an investor revolt

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

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

The float will be the first on the NZX this year, and only the second in the past three years.

Businesswire.co.nz

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