AMP Capital property fund to raise A$300 mln notes

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SYDNEY, Sept 17 (Reuters) - Australian unlisted property manager AMP Capital Wholesale Office Fund is in discussion with investors to raise A$300 million ($263 million) in two consecutive note issues to repay debt, it said.

"It's not really a typical debt issuance, it is targeted at quasi-equity investors," Henry Elliott, who manages the fund, said.

To participate in the offer, investors have to commit to participate in both tranches, he said.

The issue will consist of two parts. The first note will pay a fixed rate coupon with a maturity of up to 20 months. Upon redemption, it will be immediately followed by a second series of floating rate notes with maturities between 6 and 9 years, paying distributions mirroring those received by equity holders.

Elliott, who did not give more details on the coupons, said marketing of the notes has started in August with plans to close the offer around November or December.

The issue, arranged by AMP Capital, a unit of Australian fund manager AMP Group (AMP.AX), will target funds of funds and pension fund investors in Australia and offshore.

The fund is expected to be rated A-minus by S&P but the notes will not be rated.

In addition, another AMP Capital property fund, AMP Capital Shopping Centre Fund, is expected to raise A$250 million in notes next year, Elliott said. ($1=1.142 Australian Dollar) (Reporting by Cecile Lefort; Editing by Michael Urquhart)