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DNZ raises $115 mln for Countdown sites purchase

DNZ raises $115 mln in discounted share placement to fund Countdown sites purchase

By Suze Metherell

Sept. 24 (BusinessDesk) - DNZ Property Fund, which is changing its name to Stride Property, has raised $115 million through the placement of new shares, which it will use to help fund the acquisition of a supermarket property portfolio for $287 million.

The 59.4 million share placement was fully subscribed at $1.94 a share, a 6.5 percent discount to DNZ's last price before the stock was placed in a trading halt. DNZ plans to raise a further $15 million to fund the acquisition through a share purchase plan.

The Auckland-based company announced yesterday its deal with Antipodean Supermarkets and Antipodean Properties to buy 19 Countdown supermarket sites leased to Woolworths. It expects the purchase will lift distributable profit per share by between 1.3 percent and 1.8 percent in the first three full years of ownership.

DNZ has been selling property to help fund its $155 million NorthWest Shopping Centre development in Auckland, which is scheduled for completion in October.

The supermarket acquisition is expected to settle between Oct. 28 and Nov. 12. Three of the properties, worth $33.9 million, require third-party consents, which DNZ said will probably be obtained within 12 months of the sale and purchase agreement.

(BusinessDesk)

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