The diversified property investor, Stride, is setting up an office fund by spinning off part of its portfolio into a new NZX business called Fabric.
The demerger and NZX listing was conditional on Fabric completing a capital raising between $250 and $290 million through an initial public offering (IPO) of ordinary shares.
Fabric intended to use the funds to buy an Auckland office property in Newmarket for $217.5m.
Stride was not seeking to raise any capital or sell shares.
It was proposing to distribute ordinary shares in Fabric to shareholders of Stride on a one-for-four pro rata basis, giving existing shareholders about a quarter of Fabric's market value.
Fabric was set up as a Stride subsidiary in November 2020 to invest in commercial office property, primarily located in Auckland and Wellington, with a current portfolio valuation of $714 million.
Stride would own a cornerstone stake in Fabric and continue to manage it as it did with its other listed property fund, Investore, which held a portfolio of big box retail stores.
The company expected to complete the demerger and NZX listing by 4 October.