Australian asset management company Quattro RE is looking to raise $305 million by listing a New Zealand property portfolio valued at $431m on the ASX.
The Quattro Income Real Estate Investment Trust is offering investors shares at $1 apiece in an offer managed by Deutsche Bank and Commonwealth Bank Australia.
The portfolio will initially be made up of four New Zealand 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 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.
The fund forecasts its distribution yields at 7.5 per cent in 2015 and 7.75 per cent in 2016, and boasts operating earnings growth of 7.91 per cent in 2015 and 8.18 per cent in 2016, Quattro said in a statement.
Quattro hopes to lure investors with an average 99 per cent occupancy rate, with a weighted average lease to expiry of 7.4 years and an average yield of 7.9 per cent.
The company expects to lodge its product disclosure statement with the Australian Securities and Investments Commission later in October.