Property fund manager 360 Capital Group is floating its office REIT for $2 a share in a $155 million initial public offering, with the bookbuild planned for later this month.
The group will become one of the few listed pure-play office REITs, following a wave of consolidation in the sector. The property investment and funds management group already has a listed industrial fund and several unlisted funds.
DataRoom has learned that existing shareholders will be given priority on up to $25m of the $155m offer, which will see 77.5m shares issued at $2 apiece.
The bookbuild will be run on 21 March, with the prospectus to be lodged on 24 March. Listing is set down for 23 April.
The value of the office fund’s portfolio is $235m, with an enviable occupancy rate of 99.6 per cent. Post-float it will have a market capitalisation of $155m.
In paperwork for the float, 360 Capital forecasts its fiscal 2015 distribution yield at 8.5 per cent, compared with an industry average of 5.9 per cent. No distribution will be paid for the March quarter.
The office fund owns complexes in Burwood, NSW, and Canberra.
On its website, 360 Capital says that since it took over management of the fund in December 2010 more than $200m in assets were sold to reduce debt.
(Reporting by Amanda.Saunders@businessspectator.com.au)
Editing by Victoria.Thieberger@businessspectator.com.au )