Quadrant seeks partial exit from New Zealand’s Summerset
Quadrant Private Equity plans to list Summerset, New Zealand’s third-largest retirement village company, in November but is likely only to exit 30% of its 97% stake in the company following recent market volatility.
Summerset has registered a combined investment statement and prospectus outlining a proposed NZ$122.5-136 million offering priced at NZ$1.40-1.60 per share, The New Zealand Herald reported. This values the entire company at an estimated NZ$301-336 million.
"The interesting point is how little is actually being raised and how much of that is being retained," Chris Hadley, Quadrant's managing director, said. "Obviously Quadrant has adjusted the issuance to reflect market conditions."
Quadrant bought Summerset from AMP Capital Investors in 2007 following an abortive attempt to list the company. It has 2012 forecast pro forma net operating cashflow of NZ51.9 million and total investment properties of $632.6 million. Summerset's strong growth prospects are largely based on the expectation that the number of people in New Zealand aged 75 or over will double in the next 20 years.
IPO exits in the Australasia market have been scarce in recent months. Collins Foods, the Australian fast-food group owned by Pacific Equity Partners, is the only transaction of note, raising A$201.8 million ($216.6 million) after pricing its offering at the bottom of the indicative range.
As a result, secondary and trade sale pipeline remains strong, with Australia alone seeing $5.7 billion in private equity trade sales in the first eight months of the year, according to AVCJ Research. This compares $6.6 billion for the whole of 2010. In June, Quadrant exited Quick Service Restaurant Holdings (QSRH) - the company behind local fast-food chains Red Rooster, Oporto and Chicken Treat - to Archer Capital for $180 million.
Quadrant has also managed to negotiate Australia's difficult fundraising environment, closing its sixth fund at A$750 million last December.
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