Investore IPO, Demerger and Acquisition

Investore IPO, Demerger and Acquisition

NZX Announcement Immediate — 10/06/16

 

Stride Property Limited (Stride) announces that its wholly-owned subsidiary Investore Property Limited (Investore) has entered into a contract, on an arm’s length basis and supported by independent valuations, to acquire a $267.4 million portfolio (SCA Portfolio) from Shopping Centres Australasia Property Group Trustee NZ Limited (SCA). This comprises 14 properties located throughout New Zealand that are leased to General Distributors Limited and operated as “Countdown” branded supermarkets.

The contract to acquire the SCA Portfolio was entered into on 9 June 2016, is subject to the condition that a capital raising within Investore is successfully completed and a demerger of Investore from Stride will take place, and is expected to become unconditional on 30 June 2016. The SCA acquisition is expected to occur in two tranches in July and September 2016.

 
Intention to undertake Initial Public Offering of Investore

Stride announces that Investore intends to undertake an initial public offering (IPO) of ordinary shares, and Investore expects to lodge a Product Disclosure Statement in respect of the IPO later today.

Investore will be New Zealand’s only listed property company with an investment strategy focused on providing a stable return to its shareholders through investment in large format retail properties.

Background

• Stride established Investore as a subsidiary to invest in large format retail property in October 2015

• Stride proposes to distribute shares in Investore to Stride shareholders (based on a 1 for 4 ratio) for no additional consideration (the Demerger) so that existing Stride shareholders will hold approximately 33.4% to 38.2% of Investore upon completion of the Offer

• The Demerger will occur at the same time as completion of the IPO and result in Investore ceasing to be a wholly-owned subsidiary of Stride at the same time as becoming separately listed on the NZX Main Board

• Stride will retain an ongoing investment in Investore as a 19.9% cornerstone shareholder

About Investore Property Limited

• Investore will comprise a portfolio of 39 large format retail properties with properties located in the main urban areas throughout New Zealand, consisting of 25 properties owned by Investore (Existing Assets) and 14 assets (SCA Portfolio) contracted to be acquired from SCA
– The Existing Assets include large format retail properties previously owned by the Stride group, as well as those acquired by Investore in 2015 from
Antipodean Supermarkets Limited and Antipodean Properties Limited

• Key attributes of the Investore portfolio include:
– Tenants that are significant national retailers
– Exposure to the non-discretionary retail sector
– Long weighted average lease term (WALT) of 14.8 years

• Investore will be managed by Stride Investment Management Limited (SIML)
– SIML has an experienced management team that provides a full range of real estate investment management (REIM) services
– SIML is currently a wholly-owned subsidiary of Stride and is intended to constitute part of the “stapled group” comprising SIML and Stride which will continue to be owned by the shareholders of Stride

• Investore will register to be a listed PIE for New Zealand taxation purposes

• Until 10 June 2016, Investore Property Limited was called Stride LFR Limited

For further information please refer to the Product Disclosure Statement once it has been lodged by Investore and relevant disclosures that Stride expects to make shortly.

 


For Further Information Please Contact:
Tim Storey, Chairman, Stride Property Limited
Mobile: 021 633 089 – Email: tim.storey@strideproperty.co.nz

Peter Alexander, Chief Executive, Stride Property Limited
DDI: 09 913 1154 – Mobile: 0275 443 678 – Email: peter.alexander@strideproperty.co.nz

Jennifer Whooley, Chief Financial Officer, Stride Property Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – Email: jennifer.whooley@strideproperty.co.nz

Important Notice

No money is currently being sought in respect of the IPO. The shares to be offered under the IPO cannot currently be applied for or acquired. If the IPO is made, it will be made in accordance with the Financial Markets Conduct Act 2013.

This document is not, and should not be construed as, an offer to sell or a solicitation of an offer to buy Investore securities and may not be relied upon in connection with any purchase of Investore securities.

Investore intends to lodge a Product Disclosure Statement (PDS) with the Registrar of Financial Services Providers in New Zealand (Registrar) and make available further information on the register of offers of financial products administered by the Registrar (Register Entry) (the PDS and the Register Entry, together the Offer Materials) in respect of the IPO. The Offer Materials will be made available at www.business.govt.nz/disclose under Investore’s offer number (OFR10625). The Offer Materials will contain details of the IPO and should be read before any investment decision is made. Investors should not subscribe for any shares under the IPO except on the basis of information in the Offer Materials. You should consult your financial and other advisors before making any investment in Investore.

The information in this document has been prepared by Stride solely for informational purposes and does not purport to be complete or comprehensive and does not constitute financial product, investment, tax or other advice.

Investore IPO and Restructuring update
Stride Property Limited – FY16 Annual Results