Kiwi Income Property Trust's manager says it'll look to borrow up to $125 million through a seven-year issue of fixed rate, senior, secured bonds.
The property trust's manager is Kiwi Property Management Ltd, which is controlled by unitholders after management was internalised last year with ASB's parent Commonwealth Bank of Australia selling for about $70.6 million.
The manager says it's considering making an offer of up to $100 million of fixed rate senior secured bonds with the ability to accept up to $25 million of oversubscriptions.
"The offer of bonds is expected to open in July and it is expected the bonds will have a seven-year maturity. The bonds will only be offered in New Zealand, and no other country or jurisdiction."
The sharemarket listed Kiwi Income Property Trust names ASB, Farmers, Progressive Enterprises, Russell McVeagh and ANZ as its top five tenants. Buildings it owns include ASB's Auckland headquarters, which as of March 31 provided annual net rental income of $9.8 million.
Kiwi Property Management says it's seeking preliminary indications of interest in the bonds. The joint lead managers of the offer are Deutsche Craigs, BNZ and Forsyth Barr.
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