INDEPENDENT NEWS

Dominion Funds Restructure Plan Approved

Published: Tue 16 Sep 2003 12:12 AM
September 15 2003
DOMINION FUNDS RESTRUCTURE PLAN APPROVED
The High Court in Auckland has approved a plan to restructure 30 property investment vehicles managed by Dominion Funds Ltd to form a new company, Dominion Foundation Property Fund Ltd.
Investors in all 17 Unit Trust Funds and 13 Note Companies had earlier approved the proposal by a substantial margin at special meetings.
Dominion Funds Chief Executive Paul Duffy said the proposal is designed to create a larger entity with a more diversified portfolio, facilitating the sustainability of future distributions and reduced risk by lessening the exposure to any one tenant, property or market sector.
The new company will have an interest in 34 commercial, industrial and retail properties with a market value of $166 million. The current net rental income is $17.9 million from 63 tenants.
Its primary objective will be to pursue growth and maintain the sustainability of future distributions to investors. As a result of the approved restructure there will be savings in administration costs, greater capital flexibility and reduced interest costs.
Dominion Managed Funds Ltd will manage the new company's property portfolio.
Mr Duffy said he was pleased investors had voted so strongly in favour of the restructure and that court approval had been obtained, enabling the restructure to take place on Midnight September 30.
(Issued on behalf of Dominion Funds Ltd by Porter Novelli New Zealand Ltd.)

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