Property floats ride capital tide as ASX calls managers
Real estate investors are being hit with a series of new listings as managers capitalise on the wave of cheap capital looking for home in volatile global markets.
Some management operations are unveiling long-held plans to list on the Australian Securities Exchange while others are starting with the launch of defensive vehicles.
In the latter camp, the Newmark Property REIT raised $128.3m and it is set to float a Bunnings-focused trust on December 6. Morgan Stanley, Credit Suisse, E&P Corporate Advisory and Moelis are on the raising, with the trust garnering firepower to expand upon its eight-strong empire of properties.
The offer pricing implies a 5.1 per cent forecast annual distribution yield for this financial year and 5.3 per cent next year. It begins with a $344.6m market value and will need to trade on a tight yield in order to grow in the increasingly competitive sector where property yields are down to about 4 per cent.
It is being followed by WA-based Acure Asset Management’s proposed Acure Core Plus REIT. The fund will own industrial, neighbourhood centres, large format retail and petrol stations, giving it scope to expand from its initial $244.3m portfolio.
The trust also lists next month at market capitalisation of $166.3m and the raising could see it grow beyond its WA roots. Shaw and Partners is advising on the fund which offers an annualised distribution yield of 7 per cent.
The final play of the year is by real estate debt and equity house Qualitas which is raising $335m in a more growth-orientated float that will help propel the growth of its $4.2bn funds management empire. Qualitas this week upsized its initial public offering in a move being handled by Macquarie Capital, Canaccord Genuity and E&P Corporate Advisory.
The company is valued at $735m and founding shareholders, who include managing director Andrew Schwartz and Trawalla, the company controlled by high profile businesswoman Carol Schwartz and her husband Alan, will hold 45.6 per cent of the company once listed in late December.
But the largest upcoming float is Cromwell’s planned spin-off of its $3bn of local office holdings into a separate real estate investment trust. Chairman Gary Weiss laid out plans for the major office vehicle as the group adopts an asset light approach to its property empire. A new office fund would give listed investors another pure exposure, comparable to Centuria’s listed office trust, and it is being worked up by investment banks Barrenjoey and Credit Suisse.