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Stride changes plans for Investore unit

NZ NewswireNZ Newswire 9/06/2016 Sophie Boot

Stride Property is to list its wholly-owned subsidiary Investore Property after changing plans to spin out the unit.

Stride will distribute Investore shares to its own shareholders at a one-for-four ratio as part of the subsidiary demerging from Stride, at the same time as Investore lists on the NZX main board, it said.

Stride will retain a 19.9 per cent stake in Investore, while Stride shareholders will collectively hold between 33.4 per cent to 38.2 per cent.

In May, Stride proposed splitting its property-owning unit from its real estate investment management in a stapled structure.

Under it, each would be a separate legal entity but effectively operate in lock-step, which would allow it to expand the management arm while preserving its favourable tax status.

The company announced its listing plans while posting a 16 per cent gain in full-year earnings driven by its expanding property portfolio.

Investore will have a portfolio of 39 large-format retail properties, including 14 Countdown stores it intends to acquire from Shopping Centres Australasia Property Group for $267 million.

That acquisition is subject to a successful capital raising and demerging of Investore from Stride, and the company expects it to become unconditional on June 30.

Stride shares last traded at $2.225, and have gained 2.3 per cent this year.

Its portfolio grew to 59 properties worth $1.27 billion as at March 31.

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