$100m property firm to float

A $100 million property company associated with multi-millionaire developer Jamie Peters and the sons of Auckland investor Peter Francis is to be floated on the NZX.

Full details about the company are expected to be made public soon but it is understood the deal involves seven major properties, mainly in Auckland.

Speculation about the float comes at a time when the number of listed property entities is dwindling. Capital Properties has been taken over by AMP, Calan Healthcare Properties Trust is under threat from its manager, the Asian owner of Trans Tasman Properties has increased his stake to almost 80 per cent and Urbus Properties has been taken over by ING.

Market sources said the new entity would list as a company not a trust, offering a better deal to shareholders.

Chris and Mark Francis, sons of Peter Francis who was tagged on this year's NBR Rich List at $45 million, are expected to announce the deal with Starline Group founder Jamie Peters in the next few days. All are expected to take a stake in the business and form its board.

The two Francis sons, in their mid-30s, have founded a large but low-profile property syndication business, Augusta Group, based in the Chancery. Peter Francis was a director of the collapsed Chase Corporation and founded cinema company Force Corporation, which was sold to SkyCity Entertainment. He is a shareholder in Symphony Group which owns half the manager of listed ING Property Trust.

Former Capital Properties chief and Property Council national president Nick Wevers is also understood to be involved in the deal. Forsyth Barr is the issuing broker and is expected to raise around $60 million from the float, issuing $1 shares. The prospectus is about to be registered and is expected be available early next month. The company's name is not yet known.

Buildings in the float will include part of the $100 million Finance Centre in the CBD. Brookfields House on Victoria St West will be included along with industrial buildings in Manukau and West Auckland.

In April last year, Bayleys senior commercial broker Bruce Whillans was selling Brookfields House and said it was valued at $19.5 million.