PFI shareholders back Direct Property Fund merger

The decision will create a commercial property empire worth $812m.

Shareholders in industrial property investor Property for Industry have thrown their support behind a merger with Direct Property Fund to create a commercial property empire worth $812 million.

About 99.7 percent of PFI shareholders backed the merger resolution at a special meeting in Auckland today, and the two companies will now seek a court order ratifying the deal, they say in a statement. Some 99.9 percent of DPF investors supported the merger.

"We are delighted with the strong show of support from our shareholders exhibited in both the voter turnout and the successful voting results," PFI chairman Peter Masfen and DPF chairman Arthur Young say.

PFI shares fell 0.7 percent to $1.35 in trading today.

The merged entity's 83-strong property portfolio is estimated to be worth some $812 million, according to the information memorandum, creating net tangible assets of some $1.19 a share.

The deal will make it the fifth biggest listed property entity.

Established in 2003, DPF is an unlisted portfolio investment entity, whose shares are tradable on the Computershare platform, Sharemart.

PFI was founded in 2004 to provide listed company exposure to the industrial property market. Both companies have had dividend payout policies set at 100 percent of earnings.

The deal is expected to be completed on July 1.