Toronto-based Harvest Portfolios Group Inc. has filed a preliminary prospectus for Australian REIT Income Fund with securities regulatory authorities across Canada.
The fund proposes to issue Class A and Class F units, each at a price of $12 unit. Class F units are designed for fee-based accounts and will not be listed on a stock exchange, but are convertible into Class A units on a monthly basis.
The fund will invest in an actively managed portfolio comprised primarily of equity securities listed on the Australian Securities Exchange issued by Australian real estate investment trusts and, to a lesser extent, issuers principally engaged in the real estate industry in Australia.
Macquarie Private Portfolio Management Ltd. has been retained as portfolio manager for the fund. The portfolio manager is a member of Australia’s Macquarie Group.
The indicative distribution amount is initially targeted to be $0.055 per unit per month ($0.66 per year) representing an annual cash distribution of 5.5% based on the $12.00 per unit issue price.
The syndicate of agents for the offering is being co-led by BMO Capital Markets, CIBC and Macquarie Private Wealth Inc., and includes Scotiabank, National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P., Raymond James Ltd., All Group Financial Services Inc., Burgeonvest Bick Securities Limited and MGI Securities Inc.