New Zealand manager Precinct Properties has issued a fully underwritten placement and a share purchase plan to raise a total of NZ$310m (€153m) to partly fund a 638-bed purpose-built student accommodation (PBSA) in central Auckland.
The diversified property group also flagged that it would target to raise between NZ$4-NZ$5bn from capital partners to grow its business.
In May this year, Precinct launched a new strategic real estate investment partnership with an unnamed Singapore-based investor to develop a 964-bed PBSA facility, now underway in Auckland, bringing its total committed student accommodation pipeline to 1,602 beds.
The group said it would raise NZ$285m in the institutional placement and a further NZ$25m from a share purchase plan. The proceeds would be used initially to repay bank debt and to fund growth.
The company said it would progress on a NZ$3.7bn pipeline of growth opportunities, consisting of premium office and living sector exposures, alongside capital partners.
Scott Pritchard, Precinct’s CEO, said: “Consistent with the execution of Precinct’s strategy, we are positioning our business for sustained earnings growth. Precinct’s premium office portfolio continues to outperform in terms of occupancy and rental growth. We have positioned our business for growth through our development and capital partnering strategies.
“As we continue to execute on these strategies, Precinct is targeting NZ$4-5bn of capital partnerships over the next 3-5 years. Today, Precinct is also pleased to announce a new 638-bed purpose-built student accommodation development at 256 Queen Street, expected to open for the 2029 academic year.”
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