Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

DNZ Property sells $60M of shares at 1.8% discount

DNZ Property sells $60M of shares to institutions at 1.8% discount

By Paul McBeth

May 23 (BusinessDesk) - DNZ Property Fund, which reported a 14 percent decline in annual distributable earnings yesterday, completed its $60 million placement to institutional investors at a 1.8 percent discount.

The bookbuild process set the price at $1.68 a share yesterday, a small discount to the last trading price at $1.71 before the shares were halted. The placement will be followed by a $20 million share purchase plan next month priced at the lower of $1.6575 and the average end of day price over the 10 working days during the offer, the Auckland-based company said in a statement.

The $80 million raised will go towards two acquisitions in Auckland, as the property investor looks to re-weight its portfolio in the North Island, with a particular focus in the country’s biggest city.

“Interest from our existing shareholders and new investors has shown strong support of DNZ’s business strategy, portfolio strength and the recent retail sector acquisitions,” chairman Tim Storey said.

Because one of the acquisitions will immediately add to DNZ’s earnings, the placement and share purchase plan aren’t expected to dilute returns, and the company forecasts an annual 9 cents per share dividend in 2014.

The shares slipped 0.6 percent to $1.70 when they resumed trading today, and have gained 7.9 percent this year. The stock is rated an average ‘hold’ based on five analyst recommendations compiled by Reuters, with a median target price of $1.78.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>

OECD: NZ Economic Expansion Faces Long Term Challenges

The OECD Economic Survey of New Zealand discusses the gap between the strong short-term outlook and long-term challenges posed by low productivity growth and a changing labour market. More>>

ALSO:

GDP: