Investor support for capital raise ‘bodes well for Accelerate’

Accelerate Property Fund nonexecutive chairman Tito Mboweni says we are excited by the listing on the JSE and have been extremely encouraged by the interest and support shown by investors.

Amid a volatile and difficult period in the listed property market, Accelerate Property Fund received good investor support for its capital raise prior to the fund’s listing on the JSE next Thursday.

Accelerate on Friday announced that it had raised R1.9 billion by placing 385-million shares at R4.88 each prior to its listing.

The Fund said due to the significant demand‚ underwriter FirstRand (FSR) was not required to purchase any shares. Accelerate plans to issue 639-million shares when it lists.

“We are excited by the listing on the JSE and have been extremely encouraged by the interest and support shown by investors. Accelerate presents a unique opportunity for investors to gain exposure to the highly defensive retail sector‚” Accelerate nonexecutive chairman Tito Mboweni said.

Accelerate, which will be classified as a real estate investment trust (Reit) on listing, has a portfolio of 51 high-quality properties across South Africa, including two prominent regional shopping centres.

It said growth prospects included the right to own 50% in a super-regional centre on completion.

Accelerate’s portfolio has been valued independently at more than R5.9bn and consists of a total gross lettable area of 440,520m², with 67% of that retail space, 22% office space, 7% industrial space and a 4% specialised car-dealership component.

The company said it would maintain a strong retail bias.

“The funds we raise through the listing will provide us with the resources we need to continue to strengthen our balance sheet and make investments in new development opportunities‚ refurbish existing locations and uplift certain properties‚” said CEO Michael Georgiou.