Redefine Properties launches R1.3 billion linked units offering

Andrew Konig, Financial Director of Redefine Properties says the strong demand for the shares is reflective of the market’s confidence in Redefine’s prospects and performance and supports the acquisitions.

Redefine Properties (RDF) on Tuesday said it had increased its R1 billion equity raise, through an accelerated bookbuild, to R1.3 billion following strong demand resulting in an oversubscription of 1.5 times.

Redefine previously announced that it has concluded agreements for the acquisition of properties for a total consideration of R3.4bn‚ including the R727m acquisition of 51% of Maponya Mall in Soweto.

The proceeds of the placement would be used to finance these property acquisitions‚ the company said.

The new linked units would be issued by Redefine under its general authority to issue linked units for cash and its authority to issue linked units to fund the acquisition of property assets.

The placement would be offered to qualifying investors only through an accelerated bookbuild process. The book for the placement would open with immediate effect and was expected to close on Tuesday‚ it said.

Pricing and allocations would be announced as soon as practicable following the closing of the book. Java Capital and Rand Merchant Bank‚ a division of FirstRand Bank‚ were acting as joint bookrunners‚ it said.

Andrew Konig, Financial Director of Redefine Properties says: “The strong demand for Redefine shares is reflective of the market’s confidence in Redefine’s prospects and performance and supports the acquisitions, which will advance our strategy to grow our portfolio as-well-as improve the quality of our properties.”