Asset management company Quattro RE has paused its plans to list a New Zealand portfolio of six properties valued at $A431 million on the ASX, blaming global stock market volatility.
The Sydney-based company was looking to raise $A305m in an initial public offer selling shares of the real estate investment trust, made up of four New Zealand commercial properties and two industrial estates, at $A1 apiece.
The company has put the plans on hold, with the S&P/ASX 200 Index having declined some 4.7 per cent over the past three months amid heightened uncertainty on the ASX and in global markets.
“Despite the extensive local and international marketing of the IPO, which generated very positive feedback, the current market volatility has prompted us to put the transaction on hold for the time being,” a spokesman for Quattro told BusinessDesk in an emailed statement.
The company was still in talks with the New Zealand vendors to buy the properties, the spokesman said.
Quattro is negotiating to acquire Precinct Properties New Zealand’s 125 The Terrace building in Wellington and SAP Tower in Auckland, and Goodman Property Trust’s Enterprise Park at Wiri and SuperCheap Auto, part of the Savill Link Estate in Otahuhu.
Quattro is also in talks to buy Wellington-based Spark Central, owned by Ian Cassel’s The Wellington Company, and RJ Holdings’ AIA Building in Auckland.
Goodman’s chief executive John Dakin said the deal for Quattro to acquire two of its Auckland industrial estates was still on the table, as the businesses waited for the stock market volatility to ease.
“We will work with them over the next few weeks,” Mr Dakin said.