Real estate fund manager Quattro RE is hoping to list a $431 million trust holding six New Zealand properties on the Australian Securities Exchange.
The launch of the fund comes as GPT Group raised $255m to underpin its GPT Office Metro Fund and Centuria plans to roll out, with the assistance of CIMB and UBS, a new trust of metropolitan office and industrial properties to be managed by former Mirvac boss Nick Collishaw.
Quattro Income REIT is seeking to raise $305m with the assistance of Deutsche Bank and Commonwealth Bank with shares being offered at $1 each. The offer price compares to the net tangible assets of 95c per unit.
The fund’s portfolio comprises four office buildings, including Spark Central and 125 The Terrace in Wellington and the SAP Tower and AIA Building in Auckland, It will also own Enterprise Park and Supercheap Auto warehouses in Auckland.
The portfolio has an average occupancy rate of 99 per cent and an average yield of 7.9 per cent and an weighted average lease expiry of 7.4 years.
Quattro has forecast very attractive distribution yields of 7.5 per cent in 2015 and 7.75 per cent in 2016 which is capture the interest of retail investors.
The fund is expected to have an initial gearing of 32 per cent and has forecast operating earnings growth of 7.91 per cent in 2015 and 8.18 per cent in 2016.
“Quattro’s prime objective is to provide secure income distributions, with the potential for growth, from a range of prime commercial and logistics and warehouse assets, to be acquired in coming months,” company spokesman Tim Allerton said.