Newmark Property REIT to list on ASX. Know how to invest

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Newmark Property REIT to list on ASX. Know how to invest

Newmark IPO, Newmark property REIT, ASX-listing, Morgan Stanley, potential investors, Wesfarmers’ Bunnings  
Image source: © Stavklem | Megapixl.com

Highlights

  • Newmark property REIT is expected to be listed on ASX on 6 December this year.
  • The Company will have a market capitalisation of AU$345 million and 28% gearing at the float time.
  • Newmark is planning to issue 67.7 million stapled securities, which on listing would constitute around 37% of the total securities on issue.

Newmark property REIT is all set to start trading on ASX. The stock will get listed on 6 December 2021. Newmark is eying to raise AU$128.3 million for AU$344.6 million market capitalisation at the listing.

While the Company is tossing out to investors for an IPO this week, its bankers are confident the float will get away easily, with 75% of the deal ring-fenced.

The syndicate of four headed lead managers spearheaded by chief bookrunner Morgan Stanley ruled off a AU$129 million IPO for Newmark’s soon-to-be listed fund.  

Newmark Property REIT will have eight large format retail properties, mainly leased to Wesfarmers’ Bunnings. The Company had apprised its Potential investors that Newmark’s offering was at a 5.1% FY22 distribution yield and its Bunnings properties had 8.4 years left on their leases. In comparison, BWP’s trading at 4.2% and has a 4.2 year weighted average lease expiry. 

Bunnings’ revenue indicates three-quarters of the fund’s revenue and 87.8% of BWP’s.

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Newmark, which has so far raised unlisted funds, would list a Real estate investment trust (REIT) that includes assets in its Hardware Trust as well as the Newmark Capital (Chadstone) Property Trust. 

As per the terms presented to potential investors, the offer was priced at AU$1.895 per security, a 7.1% premium to the AU$1.77 net tangible asset value per security. 

In addition to Credit Suisse, E&P Corporate Advisory and MA Moelis Australia; the Company has also hired Morgan Stanley as one of the joint lead managers and the combined underwriters of the offer.

Around 75% of the raise is likely to come from retail investors, while 25% will originate from institutions.

Newmark is planning to issue 67.7 million stapled securities, which on listing would constitute around 37% of the total securities on issue.

How to invest in Newmark Capital:

  • Collect all the available information about Newmark Property REIT from its prospectus, ASX announcements and other available media sources.
  • Analyse the business in-depth, including risks and return potential.
  • Next, decide whether you want to buy now or later with the amount you want to invest in the stock.
  • Purchase an ETF or mutual fund that invests in REIT or you can also open a brokerage account.
  • Regularly keep track of your portfolio and try to maximize returns on it.

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