- Newmark Property REIT (NPR) debuts on the ASX after raising $128.3 million in an IPO
- The company was formed by the stapling of two of its unlisted funds – the Newmark Hardware Trust and the Newmark Capital (Chadstone) Property Trust
- Newmark Property owns eight large retail properties, primarily leased to Bunnings who represents three quarters of its revenue
- The newly-listed company says the successful ASX listing allows it to continue ts expansion plans of its retail holdings
- In its first day of trade, Newmark is up a slight 1.58 per cent with shares trading at $1.93
Newmark Property REIT (NPR) has debuted on the ASX after raising $128.3 million in an initial public offering (IPO).
The money was raised by the issue of roughly 67.7 million stapled securities at an issue price of $1.895 per stapled security. The IPO was led by Morgan Stanley.
The real estate company, who’s trading under the ticker code of ‘NPR’, was formed by the stapling of two of its unlisted funds – the Newmark Hardware Trust and the Newmark Capital (Chadstone) Property Trust.
Newmark Capital was established in 2011 and is an Australian property investment manager with an asset portfolio valued at over $1.3 billion. It’s also reportedly behind the redevelopments of Melbourne’s Jam Factory and 299 Bourke Street with its ‘flagship’ tennant to be leading beauty retailer, MECCA Brands.
Newmark Property owns eight large format retail properties which are primarily leased to hardware giant Bunnings who represents three-quarters of its revenue. Over the past 12 months, it has acquired three premium Bunnings assets with a combined value of over $200 million.
The newly-listed company said being admitted to the official list of the ASX enables it to continue its expansion plans of its retail holdings, with a portfolio that has grown to over $449 million in seven years. The Hardware Trust itself has reportedly averaged a total return of 16 per cent per annum since its inception, while the Chadstone Trust achieved an average 11 per cent per annum total return.
Joint Managing Director Chris Langford said he expects the “very strong appetite” in this sector to continue and that NPR will deliver strong investment returns.
“Newmark Hardware Trust has established a strong foundation for growth since its launch in 2014. These additional funds and the stapling with the Chadstone Trust will help facilitate expansion plans and capitalise on this growing market,” he said.
Other Joint MD Simon Morris said he was proud of NPR’s portfolio.
“Since establishing Newmark 10 years ago, we have maintained a very strong focus on real estate fundamentals and growing a strategic portfolio and we are very proud of the portfolio we have today and humbled by the support of many along the journey.”
In its first day of trade, Newmark is up a slight 1.58 per cent, with shares trading at $1.93 at 3:22 pm AEDT.