DNZ sells, buys, cuts debt
DNZ Property Fund sells offices, buys retail.
Hot Topic
Scrutiny Week
Listed DNZ Property Fund today announced the unconditional sale of its office building at 132 Vincent Street, Auckland.
DNZ said the sale was negotiated at the March 2011 valuation of $9 million. A rating valuation carried out in July 2008 put the value at $12.9 million.
Meanwhile, DNZ has commissioned Bayleys to sell its Lumley House in central Wellington.
The 14-level building is on the corner of Hunter and Victoria Streets, is “earthquake code compliant”, refurbished, fully-leased and in Wellington’s preferred office tenant precinct, according to agents Mark Hourigan and Mark Sherlock.
The building has a rateable value of $20 million and gleans $2.3 million in annual rental income. The land is a mix of city council leasehold (21-year reviews) and some freehold titles, Mr Hourigan said.
Tenants include Canon NZ, Photo Expresso, Lumley Insurance and Telecom.
It was built in 1978 and refurbished in 2004 with a number of floors further upgraded since then. Mr Hourigan said the floors lend themselves to further subdivision should a new owner wish to.
Meanwhile, DNZ has reduced its syndicated banking facility limit from $350 million to $300 million resulting in a reduction in finance costs of approximately $600,000 a year.
DNZ has also settled on the $40.73 million purchase of the three Foodstuffs supermarkets in Napier, New Plymouth and Wellington. Following the reduction in DNZ’s banking facility and the settlement of the purchase of the three Foodstuffs supermarkets, DNZ’s undrawn banking facility is approximately $30 million.
Chris Hutching
Mon, 10 Oct 2011
Mon, 10 Oct 2011
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DNZ sells, buys, cuts debt
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