Progress on DNZ's $9m Queenstown development

One of the arms of property fund DNZ has announced progress on a $9 million development.

Diversified NZ Property Fund, managed by Diversified Management which is part of DNZ, yesterday revealed details of a big Queenstown project.

DNZ Property Group, which owns properties valued at $730 million, is on a campaign to sell properties and cut debt.

It lost crusading corporate governance director Simon Botherway and lawyer Mark Hopkinson from its board this year.

DNZ ditched an attempt to list on the NZX. However, Diversified is expanding.

Construction of the first stage of its new building at Remarkables Park Town Centre would start in a fortnight and the project is expected to be finished later this year.

Leasing of stage one of the 1400sq m shopping building was well advanced.

Whitcoulls, The Coffee Club, Kapa Gallery and Canterbury of New Zealand had leased space, DNZ's retail general manager Roy Stansfield said.

DNZ said Diversified NZ Property Fund was established in November 2007 with the purchase of Remarkables Park Town Centre, then a half share in the Johnsonville Shopping Centre and a share in Pukekohe Mega Centre.

Diversified NZ Property Fund is owned by two major Australian institutional superannuation fund managers and is managed by Diversified Management, part of DNZ Property Group.