DNZ
09/09/2015 16:40
GENERAL
PRICE SENSITIVE
REL: 1640 HRS DNZ Property Fund Limited
GENERAL: DNZ: Work Commences On NorthWest Two Development
DNZ Property Fund Limited (DNZ) has commenced construction of its 'NorthWest
Two' (previously referred to as Westgate Stage Two) development on land
opposite its NorthWest Shopping Centre. The NorthWest Shopping Centre's
construction is nearly complete. The retail portion of the development is
fully leased and will open on 1 October 2015.
NorthWest Two is a complementary and important part of the overall Westgate
Town Centre. It will comprise four separate buildings providing around
7,700m? of additional dining, retail and office space in a purpose-built main
street retail environment.
DNZ's Chief Executive, Peter Alexander, says that NorthWest Two will provide
greater critical mass, encourage increased visitor numbers and offer a
broader range of shopping categories for customers.
"Ultimately this project allows us to curate the retail offer around the town
square, resulting in higher total retail sales at NorthWest. It also allows
us to provide further dining options that are an important part of our
comprehensive retail offering", Mr. Alexander said.
DNZ has signed a conditional agreement to lease with a multi-national company
for 2,200m? of office space in the new NorthWest Two development. The
agreement means that 25% of the expected annual rent for the NorthWest Two
project is conditionally secured.
DNZ has selected Fletcher Construction Company (Fletchers) to build the
NorthWest Two development. Fletchers is currently completing construction of
the Northwest Shopping Centre.
DNZ estimates that NorthWest Two will cost around $37m to complete and that
it will give a minimum yield of 7%. Project completion is anticipated in
October 2016. DNZ expects to fund the NorthWest Two development through the
sale of non-core assets.
In December 2014, DNZ announced that it had stepped-in to complete the
NorthWest Two development, as Westgate Town Centre Limited (WTCL) had failed
to deliver agreed project milestones. At that time, WTCL disputed DNZ's right
to undertake the NorthWest Two development.
WTCL has now withdrawn its dispute about the validity of DNZ's step-in. WTCL
has commenced arbitration proceedings about aspects of DNZ's NorthWest Two
building design. The central issue in the arbitration is how large one of the
four NorthWest Two buildings is required to be. WTCL has also indicated to
DNZ that it may bring interim relief proceedings regarding that building. DNZ
is confident that its NorthWest Two plans meet all relevant requirements,
including those under the arrangements that it has with WTCL.
DNZ looks forward to completing the arbitration and to resolving finally all
matters arising from WTCL's failure to deliver the project milestones.
NorthWest Shopping Centre Update
o NorthWest Shopping Centre, at the heart of the new Westgate Town Centre,
will be Auckland's newest regional shopping centre and is part of New
Zealand's largest urbanisation project.
o Retail shops in the NorthWest Shopping Centre development are fully leased.
o The NorthWest Shopping Centre will open on 1 October 2015.
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 - Email: [email protected]
Peter Alexander, Chief Executive, DNZ Property Fund Limited
DDI: 09 913 1154 - Mobile: 0275 443 678 - Email:
[email protected]
Jennifer Whooley, Chief Financial Officer, DNZ Property Fund Limited
DDI: 09 913 1150 - Mobile: 021 536 406 - Email:
[email protected]
DNZ Property Fund Overview
DNZ Property Fund Limited ("DNZ") owns one of New Zealand's largest
diversified investment property portfolios with $872.4 million (as at 31
March 2015) of commercial office, retail and industrial properties located in
the main urban areas throughout New Zealand. As at 30 June 2015, DNZ owned 42
properties with 291 tenants, a weighted average lease term (WALT) of 5.4
years and an occupancy rate of 99.1% over a net lettable area of 337,568m?.
DNZ Property Fund Limited is a Portfolio Investment Entity in which investors
hold shares and is managed by its own internal management team. DNZ is also
the manager of Diversified NZ Property Fund Limited, a $118.4 million (as at
31 March 2015) commercial property fund.
DNZ's top 10 tenants as at 30 June 2015: Bunnings, Progressive Enterprises
(Countdown), Foodstuffs (PAK'nSAVE & New World), ASB, NZ Government, The
Warehouse, Fletcher Building, Westpac, Meridian and Lion. These 10 tenants
represent 51% of DNZ's total contract rental.
End CA:00269885 For:DNZ Type:GENERAL Time:2015-09-09 16:40:28
