Queensland-based Consolidated Properties is the latest real estate business in the state to consider listing on the ASX, potentially following other property developers and investment firms into public hands.
Founder and executive chairman Don O’Rorke said the 30-year-old property development company — which has developed $2.5 billion of real estate — was scoping the process to drive the next stage of company’s growth.
“It’s something we’re considering,” he told The Australian. “We’re starting the thinking rather than having progressed the thinking.”
A move back into the public markets could see the famed Queensland developer back on the bourse after his well-publicised split from listed property group Trinity in 2010 after a six-year partnership.
Consolidated Properties’ healthy pipeline may draw interest. It was last month announced as the preferred tenderer for the Queensland government’s $850m urban renewal of Yeerongpilly Green, 8km south of Brisbane’s central business district.
It is also pressing ahead with construction of its $94m Spire residential tower on Ann Street in the city in a partnership with the Schwartz family-backed Qualitas.
And it is down to the final two bidding for Brisbane’s biggest office leasing deal this year, a 20,000sq m fit out for Aurizon. Hunter Green Institutional Broking analyst Charlie Green said the economy and the industry was favourable to seek public investment. “They are raising funds to accelerate their growth plans, there are good opportunities and they are tapping the markets,” he said. “There is a property runway. As always you need to be selective about the stocks.”
The prospect of a return by Mr O’Rorke builds on next month’s planned IPO of the David Devine-led Metro Property Development, which has been sounding out investors with investment bank Moelis & Co and brokerage Morgans.
Metro hopes to tap the market for about $200m, which could value the company at abut 8.5 times earnings, or at about $450m.
The Australian has learnt that Metro is close to buying a new Brisbane site that could sustain about 400 units, further lifting its $2.5bn development pipeline.
Other Queensland groups are eager to list. Brisbane-based property investment group Sentinel Property Group is exploring a potential float of a retail fund as well as an industrial trust, as it looks to unlock the value the $1 billion of real estate it is on track to manage by year end.
Investors are also meeting with Garda Diversified Property Group, that is seeking to list the assets of the unlisted Opus Income and Capital Fund No 21 and raise $75m via brokerage Morgans.
Folkestone Maxim Asset Management managing director Winston Sammut said it was difficult to assess float candidates until they presented their numbers.
This article first appeared in The Australian Business Review.