5 Oct 2011

Banking fee saving expected

7:30 pm on 5 October 2011

DNZ Property Fund expects to save $600,000 per year by cutting the limit of its banking facility from $350 million to $300 million.

Chairman Tim Storey says the cut won't affect DNZ's ability to take advantage of opportunities that may arise, but it will save shareholders money.

Meanwhile DNZ says it has settled on the purchase of three Foodstuffs supermarkets in Napier, New Plymouth and Wellington for $40.7 million.

Mr Storey says DNZ's undrawn banking facility is about $30 million. Shares in DNZ were unchanged at $1.25 on Tuesday.