4 Jun 2010

DNZ to buy out management contract

7:05 pm on 4 June 2010

DNZ Property Fund will pay $32 million to terminate its existing management contact, and bring it in-house.

Investors had previously been very unhappy about paying up to $56 million to buy out the contract, which is currently owned by chief executive Paul Duffy.

DNZ chairman Tim Storey says the board had unanimously agreed to the purchase price, which was well below previous independent valuations of about $50 million.