Fund managers are backing a $123.7 million bookbuild for the National Storage REIT ahead of it being thrown open to institutional investors tomorrow.
“It’s not the world’s cheapest or most exciting offer but it will be important in a balanced portfolio,” one fund manager said.
The deal would see 126.3 million securities in National Storage securities sold at 98 cents apiece, according to a fund manager offered the REIT by broker Morgan Stanley today. The trust would have a market capitalisation of $240 million, earning 7.8 cents per security in calendar year 2014.
A sizable portion of the float had already been pre-determined, and would go to property fund managers and specialist small-cap players, according to a person familiar with the matter.
One fund manager predicted the deal would be covered and said it was well-priced.
“Property trusts don’t get the same day one trading premium that offerings like Freelancer do,” the fund manager said. “But it is not mispriced, the debt is modest and the assets look okay.”