New Zealand based commercial real estate investor, DNZ Property Fund Ltd would soon float Initial Public Offer in a bid to raise around $97 million to meet its financial obligations.

The Auckland-based firm, having property worth NZ$730 million, plans to sell about 159 million shares at 82 cents per share.

The firm, according to a document released today, hopes to raise NZ$30 million from existing shareholders, while remaining amount from new institutional investors for reducing its debt burden and funding some new contracts. The firm is also in talks with some lenders to avail loans. It claimed to have sufficient funds for the existing projects to keep running.

DNZ Chairman Tim Storey said, “It is important to reduce our gearing to levels more appropriate in the current market and that would ensure support from institutional investors.”

Paul Duffey and Alastair Hassell manage DNZ Management Ltd, which has separate operations from DNZ. The two persons would retain their management role for at least 18 months by reinvesting about half the NZ$43 million in DNZ shares.