25 Jul 2017

Retail Property Group drops listing plans as interest falls short

12:52 pm on 25 July 2017

Retail Property Group's (NZRPG) plans to raise capital and list on the stock exchange has fallen through because investors have turned cautious.

The retail, commercial and residential property developer, valued at about $400 million, planned a reverse takeover of the NZX-listed investment company Bethunes Investments but failed to generate enough interest when it went on the road to sell the plan to investors.

Bethunes chair Chris Swasbrook said investor sentiment had turned wary about the listed property sector and the broader property market.

"The decision follows a non-deal roadshow by NZRPG, where market feedback indicated a capital raising in the current climate would not attach in the NZRPG Board's view a fair and reasonable price to NZRPG's portfolio of assets," he said.

The Retail Property Group's portfolio had been valued about $575m, with about 40 percent earmarked for development.

The company's portfolio includes the Westgate, Milford Centre and Highbury retail and town centre developments in Auckland and the Fraser Cover shopping centre in Tauranga.

Mr Swasbrook said it was disappointing, but Bethunes' shareholders had not incurred any costs, and the company would go ahead with a new capital raising this year.