DNZ sells two Wellington properties for $5.3 mln to help fund Westgate Mall

Thursday 4th December 2014

DNZ Property Fund, the listed property investor, sold two Wellington buildings for $5.3 million, with the funds to contribute to its Westgate Mall project.

The Auckland based company sold the Jarden Mile office space tenanted by Armourguard Security and the Tyler Road industrial site housing Fonterra Brands, both in Wellington's Ngauranga Gorge, it said in a statement. The Jarden Mile site was valued at $2.6 million as at March 31, and the Tyler Rd at $2.7 million as at Sept. 30, according to notices lodged with the NZX.

The funds will be recycled into DNZ's $155 million Westgate Mall project, which the property investor has previously said will be paid for through existing bank facilities and the sale of non-core assets. Since embarking on its divestment programme DNZ has generated $12.9 million from asset sales.

In October, DNZ's board approved putting the two Wellington sites up for sale, later adding investment properties in Auckland and Hamilton, which had a fair value of $24.25 million as at Sept. 30.

Settlement is expected next month.

The shares rose 0.6 percent to $1.835, and have gained 19 percent this year.

BusinessDesk.co.nz

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