Growthpoint Properties Limited this morning announced that it successfully closed its sizeable R2,5 billion equity raise, which opened yesterday afternoon. The capital raising was oversubscribed amid strong demand for new Growthpoint linked units. It is one of the largest capital raisings for a South African listed property company to date.Norbert Sasse, CEO of Growthpoint Properties, says: “We’re extremely pleased with the success of our accelerated book build. It enjoyed robust demand, both domestic and international. It is encouraging to see the increase in foreign demand.”
Sasse notes that local support totalled 70% of the capital raise, with the balance representing noteworthy international interest. “Many of our local investment institutions supported the capital raise, as did a pleasing number of fund managers and securities companies,” says Sasse.
With the capital raised in this substantial book build Growthpoint will pursue opportunities to further its portfolio growth strategy, in both the local and Australian markets.
“Around R1,2 billion of the capital raised will fund development projects within our existing property portfolio,” says Sasse. “Growthpoint also has a significant pipeline of potential acquisitions. By raising capital early, Growthpoint can act swiftly to benefit from various quality, distribution-enhancing investment prospects we have identified, both locally and abroad. We are already well advanced with several of these, and ready to take best advantage of market opportunities.”
Growthpoint stressed that this acquisition pipeline excludes the Fountainhead portfolio.
JSE ALSI40 listed Growthpoint Properties is the largest South African listed property company owning and managing property assets of R54,8 billion. Growthpoint intends to become a REIT at the earliest opportunity after its financial year end on 30 June 2013.
The 90 million new Growthpoint linked units were priced at R28 per linked unit.