Dominion Funds' portfolio nears $400m

By ANNE GIBSON

Money Managers' property offshoot Dominion Funds owns properties worth just under $400 million, after buying Microsoft House in the Viaduct Harbour and a Tauranga property that it plans to redevelop into a bulk retailing zone, says chief executive Paul Duffy.

The 5ha Tauranga block on the corner of Chapel and Marsh Sts has 19 tenants in 12,209sq m of buildings.

Tenants include Placemakers, CSR Monier, Palmers Garden Centre, NZ Office Products, Florentines bakery, NZ Post, Cogent Communications and Express Couriers.

Net rental income is $1 million, says Duffy, but Dominion hopes to increase tenancies to about 25 within three to five years, earmarking $10 million to $25 million for the deal.

"High traffic volumes and close proximity to the Tauranga/Mt Maunganui bridge, coupled with the site's position and size, mark it as ideal for a bulk retail redevelopment," he says.

"The property offers excellent existing rental income with the opportunity to increase the density on the site and subsequently increase future income and return for our investors."

Dominion's new Viaduct Harbour apartment block has risen fast and is nearly finished.

Viaduct Point, behind The Point apartments, will get its roof this week and should be finished in November. Tenants will shift in during the first week in December.

Deposits have been paid on 75 per cent of the apartments.

Dominion is seeking $10.5 million to part-finance its $14.5 million purchase of Microsoft House, via Money Managers' Harbourside Property Fund syndicated offer, which closes in July.

The former Caltex House has been refurbished.

Dominion Funds

Viaduct Point