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DNZ sells two Wellington properties for $5.3 mln to help fund Westgate Mall

DNZ Property Fund, the listed property investor, sold two Wellington buildings for $5.3 million, with the funds to contribute to its Westgate Mall project.

The Auckland-based company sold the Jarden Mile office space tenanted by Armourguard Security and the Tyler Road industrial site housing Fonterra Brands, both in Wellington's Ngauranga Gorge, it said in a statement. The Jarden Mile site was valued at $2.6 million as at March 31, and the Tyler Rd at $2.7 million as at Sept. 30, according to notices lodged with the NZX.

The funds will be recycled into DNZ's $155 million Westgate Mall project, which the property investor has previously said will be paid for through existing bank facilities and the sale of non-core assets. Since embarking on its divestment programme DNZ has generated $12.9 million from asset sales.

In October, DNZ's board approved putting the two Wellington sites up for sale, later adding investment properties in Auckland and Hamilton, which had a fair value of $24.25 million as at Sept. 30.

Settlement is expected next month.

The shares rose 0.6 percent to $1.835, and have gained 19 percent this year.