Precinct said the proceeds will be used to repay bank debt, reducing its pro forma gearing to 24% by the end of 2025.
The company also provided an update on its Downtown project, stating that it is progressing work to support a development commitment decision.
It has partnered with Australian contractor Built for the early contractor involvement phase, which is expected to continue until April 2027.
Precinct is one of the largest NZX-listed landlords, with a $2 billion market cap. The company posted after-tax net profit of $2.9m in the December half-year, with funds from operations dipping to $53.8m from $55m.
The company is advancing its 56-level Downtown Carpark redevelopment near Auckland’s waterfront, with the project going through the Government’s fast-track consenting pathway.
A substantive resource consent application was lodged under the pathway in the period, and resource consent uplift is anticipated in the next six months.
Precinct has a target of $4b to $5b of capital partnerships during the next three to five years, having transformed lately from a solely commercial developer to a solely residential developer.
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.