Days after it announced DNZ Property Fund announced it would be paying current chief executive Paul Duffy and recently retired director Alistair Hassell $35 million to cancel their management contract, it has said it will launch a capital raising for the
Days after it announced DNZ Property Fund announced it would be paying current chief executive Paul Duffy and recently retired director Alistair Hassell $35 million to cancel their management contract, it has said it will launch a capital raising for the same amount.
DNZ Property Fund chairman Tim Storey said the possibility of a $35 million capital raising would be discussed at its upcoming annual meeting.
“The feedback we received from the shareholder meetings was a preference for a smaller capital raising that would be accessible to as many shareholders as possible.” said Mr Storey.
”Shareholders also indicated the structure of the capital raising should also minimise the dilution affect for those who do not take part in the capital raising.”
The board had decided a $35 million pro rata offer could be put to existing shareholders, with a book build for the shares its 8000 shareholders had not subscribed to.
“This offer structure had been designed to enable maximum participation by existing shareholders with the funds raised to be used to reduce the company’s debt levels,” Mr Storey said.
“We believe this capital raising initiative will be supported by shareholders.”
DNZ’s portfolio of 58 properties was worth $700.1 million as at March 31 but occupancy was only at 95.6%.
Late last year it withdrew plans for a $42 million management contract buyout, $130 million capital raising and listing on NZX.
A date for the company’s annual meeting has not yet been confirmed.
