Synergy’s vendor placement is heavily over-subscribed
William Brooks, CEO of Synergy Income Fund
JSE-listed property company Synergy Income Fund Limited today announced its maiden distributions to unitholders and closed a heavily oversubscribed vendor placement of R370 million in new capital for the fund.
The recently listed retail fund announced maiden distribution to unitholders of R25.3 million for the period from listing on 14 December 2011 to 30 June 2012. The allocated distribution is 44.2201 cents per A linked unit and 19.5340 cents per B linked unit.
The distribution announced is in line with the projections forecast in the Pre-listing Statement for the company.
The successful capital raising will increase the market capitalisation of Synergy to approximately R1.1 billion.
William Brooks, CEO of Synergy Income Fund, says: “We are very pleased to be able to report a maiden distribution in line with our forecast particularly as this has been achieved despite the unexpected challenges and consequent delays to our acquisition pipeline brought on by the Competition Authorities. Thankfully these challenges are now behind us and we can continue with the acquisition driven growth strategy for our retail portfolio.”
Synergy is a specialised retail property fund investing in midsized commuter and small regional shopping centres located in high growth rural and township nodes. Synergy operates in partnership with leading convenience retailer Spar.
Synergy has aggressively grown its assets from R280 million at listing to R1,7 billion currently.
The capital raised through the vendor placement will be used as part payment for Synergy’s latest acquisitions, Gugulethu Square in Cape Town and Setsing Crescent in Phuthaditjhaba. The remaining portion of the total R530 million purchase consideration is being funded by debt.
Brooks says: “We are delighted with the successful outcome of the placement and the strong backing we have received from institutional investors. Synergy will continue to grow its portfolio with value-enhancing lower LSM retail acquisitions. We are well positioned to give our investors a sustainable competitive advantage and appealing growth prospects.”
