DNZ Property Fund, which is almost halfway through a planned series of asset sales, has bought Heartland House in Newmarket, Auckland, for $17 million, in an area it describes as one of its preferred locations.
The office and car-parking building includes seven retail units and the purchase price will give DNZ a yield of 7 per cent, it said. The property has a weighted average lease term (WALT) of 5.5 years, longer than DNZ's average of 5.1 years.
"This acquisition fits well with our strategy" said chief executive Peter Alexander. "This precinct in Newmarket is one of our preferred locations. Newmarket has extensive private and public transport links and excellent amenity. The acquisition is also immediately accretive to both earnings and WALT."
DNZ sold $32 million of assets as part of a plan to divest $80 million of property in the year ended March 31, leaving it with 41 urban commercial office, retail and industrial properties valued at $872.4 million.
The acquisition will be through existing bank debt and the sale of non-core assets, and is expected to settle at the end of the month.
