Bell Gully is delighted to be advising Fabric Property Limited on its initial public offering and NZX listing.
Fabric, a wholly-owned subsidiary of Stride Property Limited, will be demerged and listed on the NZX on completion of
the IPO, creating a new listed office fund. The IPO will raise between NZ$250 million and NZ$290 million and see shares
offered to institutions, brokers and eligible shareholders of Stride Property Group (Stride, comprising Stride Property
Limited (SPL) and Stride Investment Management Limited (SIML)).
The transactions come after SPL established Fabric as a property company focused on investing in quality and sustainable
office properties in November 2020. The demerger and the creation of a new Stride product in the form of an NZX listed
office fund is a continuation of Stride's strategy of creating sector specific products.
Stride will continue its involvement in Fabric as SPL will hold an initial cornerstone shareholding of between 25% to
32%, depending on the final amount raised in the IPO. SIML will also continue to provide real estate investment
management services to Fabric under a new management agreement.
Stride Chief Executive Philip Littlewood said it was important that the IPO was well received. “Stride will keep looking
to provide differentiated investment opportunities for investors, such as this listed office fund with high quality and
strong green rating credentials."
The Bell Gully team was led by Partners Amon Nunns and Chris Goddard, with support from property partner Jane Holland and finance partner Hugh Kettle, senior associate Phillip Leightley, and lawyer Victoria Smaill.
Partner Amon Nunns said: “We are proud to have once again supported Stride to execute its strategy through Fabric's
demerger and IPO. We are delighted to see another quality New Zealand company seek an NZX listing, with our market
leading experts being involved across a broad range of capital markets, property, insurance and finance aspects of the
transaction"
Bell Gully has advised Stride on the establishment of its unique NZX listed stapled structure, and the establishment of
Fabric, industrial property joint venture Industre Property, and large format retail property ownership business
Investore Property Limited.
Baker & McKenzie acted as offshore legal counsel, and Russell McVeagh acted for the joint lead managers.