It wants to build a new purpose-built student accommodation in downtown Auckland. Photo: 123RF
Listed property company Precinct Properties has announced a $310 million equity raise, as well as plans for a new purpose-built student accommodation in downtown Auckland.
Precinct said the raise would initially be used to repay bank debt and allow it to progress its $3.7 billion pipeline of projects.
Key to its plans would be a new $201m, 638-bed student accommodation at 256 Queen Street, expected to open for the 2029 academic year.
The raise would be made up of an underwritten placement of $285m at $1.23 per share, a discount to the last closing price of $1.33. It would also be made up of a non-underwritten share purchase plan targeting $25m.
Precinct chief executive Scott Pritchard said the company was positioning itself for 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."
The announcement of the student accommodation follows a recently formed partnership to deliver a new 964-bed facility at 22 Stanley Street.
"256 Queen Street is a continuation of our strategy to establish investment partnerships focused on creating new, best in class, student accommodation, and a process to secure a capital partner will commence shortly," Pritchard said.
Precinct also reconfirmed its dividend per share guidance to 6.75 cents per share for the financial year ending 2026.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
