Paramount Property plans to raise $25m in IPO

By NZPA

Friday 1st November 2002

Paramount Property Trust today announced plans to raise $25 million in an initial public offering and intends to list on the Stock Exchange on December 2.

The offer, which is being promoted by Symphony Group and is underwritten by Forsyth Barr Group, has opened and will close on November 29.

The trust plans to use the money raised to buy two Auckland properties, AGC Building in the Viaduct Harbour precinct and Ericsson House in the Domain Centre office park, and intends to subsequently add further properties to its portfolio.

Symphony Group and associates, developers of the properties that Paramount will acquire, will be issued 6.277 million units outside of the public offer as part consideration for the properties.

Symphony Group is the manager of the trust through a wholly owned subsidiary.

The initial gross dividend yield for the trust is forecast to be 11 percent for the year to March 31, 2003, on an annualised basis, increasing to 11.2 percent for the financial year to March 2004. Dividends are to be paid quarterly.

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