DNZ Property Fund is considering a $35 million capital raising.
The announcement comes just days after it announced it plans to pay $35 million to terminate its existing management contacts, which are owned by its chief executive Paul Duffy and director Alastair Hasell.
DNZ chairman Tim Storey says the pro rata offer will be made to the fund's existing 8000 shareholders, with a book build process run for any shares that are not taken up.
The money will be used to repay debt.
Earlier, Mr Storey said the buyout of its management contract removed a significant impediment to listing, and he expected investors to react favourably.
Mr Storey says the board unanimously agreed to the purchase price, which was well below previous independent valuations of about $50 million.
Shares in the fund, which are traded on the Unlisted market, have been on a trading halt.
Mr Storey says that with the internalisation of the contract, and the adoption of a new constitution, there will no longer be two classes of shareholder. He says that will remove a large impediment to any listing plans.
