The $567.6 million float of GDI Property Group closed on strong demand last night after sole lead manager Credit Suisse achieved its target $310 million in equity and existing investors piled into the float.
GDI is Australia's largest real estate IPO of the year and forms part of a rush into property REITs this week, with investors pouring more than $1.3 billion into the sector.
Existing investors were allocated about $256.7 million of the float’s total equity, along with management.
Credit Suisse successfully tapped the market for 310 million stapled securities at $1.00 a share, after opening the bookbuild on Wednesday morning.
About 80 per cent of existing unit holders in the GDI syndicates chose to stay in and their purchase of additional stock put the effective rollover rate at 85 to 90 per cent.
The rollover rate can be seen as a ringing endorsement of GDI’s management.
GDI executive chairman Tony Veale and managing director Steve Gillard took a combined 10.5 per cent of the $567.6 million float.
The prospectus for GDI will be lodged on Monday.
GDI will list on 17 December, the same day as PACT group, which Credit Suisse is also running.
The trust will use the proceeds of the raising to form the new listed vehicle and bankroll two acquisitions, including an office tower on Queen Street in Brisbane, valued at $120 million.
The GDI Property Group will control about $867 million in assets at listing, including directly owned assets of about $680 million.
Other properties include 233 Castlereagh Street in Sydney, 197 St Georges Terrace and the Mill Green complex in Perth, and 25 Grenfell Street in Adelaide.