Bell Gully advises on Fabric Property IPO
Bell Gully is delighted to be advising Fabric Property Limited on its initial public offering and NZX listing.
Fabric, a wholly-owned subsidiary of
Stride Property Limited, will be demerged and listed on the
NZX on completion of the IPO, creating a new listed office
fund. The IPO will raise between NZ$250 million and
NZ$290 million and see shares offered to institutions,
brokers and eligible shareholders of Stride Property Group
(Stride, comprising Stride Property Limited (SPL) and Stride
Investment Management Limited (SIML)).
transactions come after SPL established Fabric as a property
company focused on investing in quality and sustainable
office properties in November 2020. The demerger and the
creation of a new Stride product in the form of an NZX
listed office fund is a continuation of Stride's strategy of
creating sector specific products.
Stride will continue its involvement in Fabric as SPL will hold an initial cornerstone shareholding of between 25% to 32%, depending on the final amount raised in the IPO. SIML will also continue to provide real estate investment management services to Fabric under a new management agreement.
Stride Chief Executive Philip Littlewood said it was important that the IPO was well received. “Stride will keep looking to provide differentiated investment opportunities for investors, such as this listed office fund with high quality and strong green rating credentials."
The Bell Gully team was led by Partners Amon Nunns and Chris Goddard, with support from property partner Jane Holland and finance partner Hugh Kettle, senior associate Phillip Leightley, and lawyer Victoria Smaill.
Amon Nunns said: “We are proud to have once again
supported Stride to execute its strategy through Fabric's
demerger and IPO. We are delighted to see another quality
New Zealand company seek an NZX listing, with our market
leading experts being involved across a broad range of
capital markets, property, insurance and finance aspects of
Bell Gully has advised Stride
on the establishment of its unique NZX listed stapled
structure, and the establishment of Fabric, industrial
property joint venture Industre Property, and large format
retail property ownership business Investore Property
Baker & McKenzie acted as offshore legal counsel, and Russell McVeagh acted for the joint lead managers.