Direct Property Fund Maintains Value Of Portfolio

Press Release – Direct Property Fund

Direct Property Fund (DPF) has maintained the value of its portfolio due to its acquisition strategy and added value transactions within its existing portfolio through 2009. Direct Property Fund Maintains Value Of Portfolio

Direct Property Fund (DPF) has maintained the value of its portfolio due to its acquisition strategy and added value transactions within its existing portfolio through 2009.

Greg Reidy, Managing Director DPF says that although 2009 presented some very challenging economic conditions the Fund decided on a proactive rather than a reactive approach.

“We focused on keeping busy during the downturn and it is paying dividends,” says Reidy.

Rather than investing in what have proven to be risky investment sectors, DPF continued to focus its attention on industrial property, office and commercial space in city fringe areas. 70 per cent of its portfolio comprises of industrial property and 30 per cent is fringe office and commercial property.

The fund focused on adding value to the properties within its portfolio during 2009 by negotiating new long-term leases and renewals. Fixed and CPI rent review provisions contained in existing leases has also assisted.

“The success of our portfolio is dependent on having good quality, long-term tenants such as the New Zealand Institute of Chartered Accountants and Mercedes Benz, both of whom have recently signed new leases in DPF’s portfolio at Carlaw Park and Pacific Rise Mt Wellington,” says Reidy.

In 2010, DPF will continue to build on the progress it made during the uncertainty of 2009.

ENDS

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