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Propertylink raises A$500m in IPO

The Sydney-based logistics investment firm has raised its target capital and is now listed on the Australian Stock Exchange

Propertylink, the Sydney-based investment management firm, has commenced trading on the Australian Stock Exchange (ASX) after successfully raising its target of A$503.5 million ($385.4 million; €346.15 million) in the initial public offering (IPO).

The capital via the IPO was raised at a price of A$0.89 per stapled security from institutional and retail investors. Propertylink securities have now starting trading on a conditional and deferred settlement basis.

“We are proud to have created a real estate group with an attractive growth profile and a clear point of difference in the Australian listed property sector,” said Stuart Dawes, chief executive officer of Propertylink. “We are excited to welcome new shareholders and look forward to realising the opportunities an ASX listing presents to Propertylink.”

Propertylink, which has more than A$1.55 billion of assets under management, has joined a growing list of industrial and logistics firms that have listed their businesses, including Global Logistic Properties and the Goodman Group.

In mid-July the firm lodged a prospectus with the Australian Securities and Investments Commission citing its intention to list its platform. The IPO offer was then priced following a book building exercise within a range providing a pro forma forecast distribution yield of 7.3 percent to 7.8 percent for the 2017 financial year. Credit Suisse, Goldman Sachs and JP Morgan were the joint lead managers to the offer.

To beef up its property portfolio ahead of the IPO the firm in partnership with Goldman Sachs agreed to acquire a logistics and warehouse portfolio from Denison Funds Management for A$142 million earlier this week. The deal was made via its unlisted Property Link Enhanced Partnership (PEP).