Guardian Trust is looking to raise at least $40 million from the proposed float of its three index tracking property companies.
The funds will invest in listed property securities in New Zealand and Australia, and they will be passively managed and track specialist property indices developed by sharebroker SBC Warburg Dillon Read.
Guardian Trust says it has secured a binding ruling from the Inland Revenue Department for any capital gains to be exempt from tax for at least the next four years.
"This offer provides investors with the chance to access the income and capital growth of major listed property companies and trusts in Australia and New Zealand covering 250 properties on both sides of the Tasman," chief investment officer Michael Good says.
"These companies offer attractive tax benefits for investors as any capital gains from the sale of shares in the three companies are exempt from tax in Australia and New Zealand. Tax exempt and low tax investors can gain significant tax benefits, particularly from the company which invests in Australian property."
The three companies have been named as Property Leaders New Zealand (PLNZ), Property Leaders Australia (PLA) and Property Leaders New Zealand and Australia (PLANZ).
PLNZ will invest in the top five listed New Zealand property companies or trusts by market capitalisation. They are St Lukes Group, AMP NZ Office Trust, Trans Tasman Properties, Kiwi Income Property Trust and Shortland Properties.
PLA will invest in the top 10 listed Australian property companies or trusts by market capitalisation. Included are Westfield Trust, General Property Trust, Stockland Trust Group, Westfield America Trust, Schroders Property Fund, Gandel Retail Trust, National Mutual Property Trust, Advance Property Fund, BT Office Trust and Prime Industrial Property Trust.
PLANZ will invest in a mix of the two other indexed funds at a ratio of 70 percent PLA and 30 percent PLNZ.
The prospectus for the offer to invest in shares in the three companies will be available on Monday May 4, and Guardian Trust expects approval to list by June 5.
Guardian Trust is looking to raise at least $40 million from the proposed float of its three index tracking property companies.