AustralianUnity Real Estate Investment is moving forward with its listing of its Australian UnityOffice Property Fund on the Australian stock exchange, The Australian Financial Review reported.
Marketingto institutional investors is expected to commence in May, and the A$391million fund is aiming to raise up to A$155 million from an IPO. It is seekingto reduce its gearing to around 30%, and the proceeds will also be utilized topay for transaction costs, terminating interest rate swaps, and a potential "significant"withdrawal offer for its existing investors, the report said.
Thefund owns a portfolio of eight office assets, located in New South Wales,Victoria, Australian Capital Territory, South Australia and Queensland,according to the report. The portfolio has an occupancy rate of 96.5%.
Thefloat is expected to deliver a 7.4% distribution yield in the first year.
Listingis expected around June 30, subject to an investor vote, the news outlet said,citing Australian Unity Real Estate Investment general manager Mark Pratt.
CreditSuisse, UBS and the National Australia Bank are joint lead managers.
Prattadded that the fund will be the first A-REIT to list on the ASX in 2016, and astrong investor interest is expected, according to the report.
As of May 4, US$1 wasequivalent to A$1.34.