Precinct Properties launches $310m equity raise to fund growth pipeline

Scott Pritchard, CEO of Precinct Properties. Pnoto / NZME

NZX-listed Precinct Properties has launched a $310 million equity raise to fund growth through a fully underwritten $285m placement and a non-underwritten share purchase plan targeting $25m.

The company said proceeds would initially be used to repay bank debt and would allow Precinct to progress its $3.7 billion pipeline of growth opportunities, among them being a $201m student accommodation development at 256 Queen St, Auckland.

The placement had been underwritten at $1.23 per new stapled share, being a 7.5% discount to the last closing price of $1.33 on Friday and a 7.7% discount to last week’s five-day volume-weighted average price of Precinct’s stapled shares.

NZX trading in Precinct’s securities has been halted while the capital raise takes place.

Chief executive Scott Pritchard said Precinct was positioning itself for sustained earnings growth.

“Precinct’s premium office portfolio continues to outperform in terms of occupancy and rental growth,” he said.

“We have a proven track record of developing world-class real estate, and we have positioned our business for growth through our development and capital partnering strategies,” he said.

Precinct is targeting $4-5b of capital partnerships over the next three to five years.

The equity raise was expected to increase flexibility to progress Precinct’s pipeline of development opportunities, including the facility at 256 Queen Street, planned development of Downtown Car Park, residential build-to-sell projects and other growth opportunities.

Following the equity raise, the company’s pro forma gearing wold be 33.2%, down from 41.6% as at June 30, 2025.

The dividend per share guidance provided at the full-year result of 6.75 cents per share for 2026 was consistent with 2025, reflecting a funds from operations payout ratio of 90-92%.

Precinct said the $285m placement would be conducted today through a book build in which institutional and other select investors in New Zealand, Australia and certain other jurisdictions would be invited to participate.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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