Australia's Quattro looks to raise A$305 million listing NZ property portfolio on ASX
By Suze Metherell
Oct. 2 (BusinessDesk) - Quattro RE, an Australian asset management company, is looking to raise A$305 million by listing a New Zealand-centric property portfolio valued at A$431 million on the ASX, and signals further acquisitions may be on the cards.
The Quattro Income Real Estate Investment Trust is offering investors shares at A$1 apiece in an offer managed by Deutsche Bank and Commonwealth Bank Australia. The portfolio will initially be made up of four commercial office properties and two industrial estates, but the trust is looking at further acquisitions in New Zealand and Australia, spokesman Tim Allerton told BusinessDesk.
"The strong fundamentals and economic outlook for New Zealand has started to attract capital flows from global property investors, with the likes of Dekka, Credit Suisse and Canada's PSP investing $1.5 billion this year," Quattro said in a statement.
The news comes after Goodman Property Trust and Precinct Properties New Zealand said they were in talks with the Australian investor to buy several of their properties. Quattro is planning to acquire Precinct properties 125 The Terrace in Wellington and Auckland's SAP Tower, and Goodman's Enterprise Park at Wiri and SuperCheap Auto, part of the Savill Link Estate in Otahuhu.
It is also in talks to buy Spark Central, owned by Ian Cassel's The Wellington Company, and RJ Holdings' AIA Building in Auckland. Allerton said all of the deals are still to be finalised.
The fund forecasts its distribution yields at 7.5 percent in 2015 and 7.75 percent in 2016, and boasts operating earnings growth of 7.91 percent in 2015 and 8.18 percent in 2016, Quattro said in a statement. Quattro is hoping to lure investors with an average 99 percent occupancy rate, with a weighted average lease to expiry of 7.4 years and an average yield of 7.9 percent.
The company expects to lodge its product disclosure statement with the Australian Securities and Investments Commission later this month.