KEY POINTS:
The Kermadec Property Fund float has raised almost all the $61.25 million it is seeking but will remain open for another week.
Mark Francis, Kermadec's founder and a director, said four institutions had taken shares and he was confident the offer would close fully subscribed.
The share offer opened on November 8 and closes on December 6, with trading due to start on December 11 and a maiden dividend payable in April.
On Friday, Kermadec director and founder Mark Francis said around $59 million had been raised.
But one analyst remained "lukewarm" about the new company. Mark Lister of ABN Amro Craigs said the float was so small that it raised little real interest and its buildings were far from A-grade calibre.
"It's very small and you wouldn't call it top-tier stuff in terms of quality. A few rental guarantees in the portfolio are a negative as well.
"On the positive side the yield looks good and the price relative to net tangible asset backing does also," Lister said.
Kermadec is issuing 61,250,000 shares at $1 each to buy properties valued at around $100 million. The company will own seven buildings in Auckland, Hamilton and Palmerston North. Tenants include the Courts Department, Coca-Cola, Amatil, Foodstuffs, Wilson Parking and Brookfields Partners.
"A number of investors have applied for stock in excess of their entitlements and four of the six major institutions have invested," Francis said.
Many investors in real estate syndicator Augusta had also elected to take shares in the new fund instead of a cash payout from their existing investments, Francis said. Augusta was founded by Francis.
Peter Wilson, a former Ernst & Young partner, is Kermadec's chairman and former Capital Properties chief executive Nick Wevers is a board member.
Francis is the son of multimillionaire property developer Peter Francis and the Kermadec offer is underwritten by Forsyth Barr Group.
The most valuable properties in the float are the $29 million Finance Centre Carpark on Albert St in Auckland's CBD and the $23.2 million Brookfields House. The buildings were owned by Trans Tasman Properties, which two years ago sold to Starline Group's Jamie Peters. He quickly put them back on the market and Brookfields House was valued at $19.5 million in April last year.
Kermadec's Real Estate
* $4.5 million Hamilton packaging building.
* $8 million Henderson court building.
* $10.7 million Coca-Cola warehouse, Palmerston North.
* $29 million Finance Centre Carpark, Auckland.
* $23.2 million Brookfields House, Victoria St, Auckland.
* $13.5 million Manukau Business Park, South Auckland.
* $11 million office block, 60 Cook St, Auckland.