Precinct Properties launches $310m raise for growth pipeline

Monday, 13 October 2025

Precinct Properties is positioning its business for sustained earnings growth, chief executive Scott Pritchard says.

Commercial developer Precinct Properties is seeking $310 million in new capital to help pay for its student accommodation build in Auckland’s CBD, and to repay bank debt.

In an announcement on the NZX on Monday, the company said it was going into a trading halt while an equity raise took place.

It was aiming to fund growth through a fully underwritten $285m placement and a non-underwritten share purchase plan targeting $25m, it said.

The raise would help the company progress its $3.7 billion pipeline of builds, but the bulk would go towards a new $201m student accommodation development at 256 Queen Street in Auckland.

Precinct chief executive Scott Pritchard said the company was positioning its business for sustained earnings growth, consistent with the execution of its strategy.

256 Queen Street in Auckland's CBD is set to be transformed into a 638-bed student accommodation facility.

The company’s premium office portfolio continued to outperform in terms of occupancy and rental growth, he said.

“We have a proven track record of developing world-class real estate, and we have positioned our business for growth through our development and capital partnering strategies.

“As we continue to execute on these strategies, Precinct is targeting $4 [billion] to $5 billion of capital partnerships over the next three to five years.”

Pritchard said Precinct was committed to the development of the 638-bed purpose-built student accommodation development on Queen Street.

Consent was secured for the facility earlier this year, and he said it was expected to open for the 2029 academic year.

The announcement followed the recent formation of an investment partnership to deliver the company’s 964-bed student accommodation facility currently under construction at 22 Stanley Street in Auckland.

It would bring Precinct’s total committed student accommodation pipeline to 1602 beds, he said.

An artist’s impression of Precinct Properties’ planned redevelopment of the Auckland Downtown Carpark site.

“256 Queen Street is a continuation of our strategy to establish investment partnerships focused on creating new, best in class, student accommodation, and a process to secure a capital partner will commence shortly.”

But the raise would also increase flexibility to progress Precinct’s broader pipeline of developments, the company said.

That included its planned Downtown Car Park development, and residential build-to-sell projects, such as its Dominion & Valley project in Mt Eden, and its 20-residence boutique development, Pillars, in St Mary’s Bay.

The raise would position its balance sheet for growth, while maintaining a balanced approach to gearing and liquidity levels, the company said.

Proceeds from the raise would initially be used to repay bank debt, and were expected to result in the company’s gearing falling to 33.2% from 41.6%.

The $285m placement would be conducted on Monday through a bookbuild where institutional and select investors in New Zealand, Australia and certain other jurisdictions would be invited to participate.

The trading halt would last until the placement bookbuild was completed or until 9am Tuesday.

In the NZX announcement, Precinct reconfirmed its dividend per share guidance to 6.75 cents per share for the financial year ending 2026.

In August, Precinct announced improvements in operating profit and total income after tax in its financial results for the year to June 30.

At the time Pritchard said the weaker New Zealand economy over the last year had impacted on the company’s retail and operating businesses.

But positive sentiment was returning and the company was beginning to see growth and opportunities emerge, including further capital partnering initiatives, he said.