Centuria pulls plug on $215m float of property trust
Centuria Capital has become the latest casualty of the uncertainty on the sharemarket with the decision to cancel its proposed $215.3 million float of the Centuria Property Trust.
After a book-build process, which was supported by private investors, the underwriters fell short with institutional investors. It is believed property developer Terry Agnew was asked to take a higher stake than his original 19.9 per cent.
The proposed float owned one asset, the Northpoint Tower in North Sydney, which it bought from Mr Agnew to seed the trust.
Centuria chief executive Nick Collishaw said while he was disappointed, there were plans to revisit the float in early calendar 2014, "when we hope market conditions have improved".
"Whilst there was good support for the trust's strategy and management, Centuria is disappointed the offering did not receive sufficient demand to complete the IPO, notwithstanding the strong lead from domestic and Asian retail investors," Mr Collishaw said.
"[Centuria] retains its aspiration to create a listed real estate funds management platform."
The cancellation followed the recent shelving of the $367 million Pacific Retail REIT, which planned to buy four suburban malls from CFS Retail.
Advisers Moelis & Company also blamed the sharemarket and uncertainty in the lead-up to the federal election on the decision not to proceed.
Fund managers said the two floats offered solid yields but the assets were small and market conditions remained uncertain for retail and smaller office trusts. Investors are now keenly awaiting the details of the planned $200 million float by APN Property.