DNZ buys three Foodstuffs supermarkets for $40 million
DNZ celebrates long-term leases with "excellent" growth potential.
DNZ Property Fund has bought three Foodstuffs supermarkets for $40.73 million.
The supermarkets are located in Wellington, Napier and New Plymouth.
Settlement is scheduled for September 20.
DNZ chief executive Paul Duffy said the transaction secured the strong tenant covenant of Foodstuffs for DNZ, “with new long-term leases in three strategic regional north island locations that have excellent growth potential.”
The new 18-year leases contain fixed annual increases with five-yearly market reviews.
“This transaction enhances the company's portfolio, adds another quality tenant, further improves the portfolio's strong weighted average lease term and provides contracted income growth in the future for DNZ Property Fund shareholders,” Mr Duffy said.
The acquisition will be funded by a selected asset divestment programme, which is already in progress, supported by bank debt to maintain the company’s bank loan to value ratio in the low 40% range.
NBR staff
Tue, 05 Jul 2011
Tue, 05 Jul 2011
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DNZ buys three Foodstuffs supermarkets for $40 million
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