Vunani Property Investment Fund (VPIF), the only JSE listed property fund to offer investors significant exposure to commercial offices, has announced the final, JSE-approved terms of its rights offer to raise up to R455 million.
- Will fund acquisition of properties in Greenstone Hill Office Park and settle floating debt
- Positively received by market with leading institutions following their rights
The Fund will offer a total of 48 503 939 new linked units (“rights offer units”) to unitholders at a subscription price of 987.33 cents per rights offer unit (which includes the accrued distribution) in the ratio of 40.21283 rights offer units for every 100 linked units held on the record date for the rights offer.
The subscription price of 987.33 cents per rights offer unit comprises a clean price of 938.07 cents and total pre-paid distributions of 49.26 cents. As a result, the rights offer units will be entitled to the full final 2013 distribution.
The clean price of 938.07 per linked unit represents a 4% discount to the closing clean price of VPIF linked units listed on the JSE as at the close of business on Thursday, 4 July 2013.
“We are very encouraged by the market’s positive support, despite volatile macro-economic conditions,” commented VPIF CEO, Rob Kane.
“A number of our largest institutional investors have already provided their irrevocable support and some more confirmations are coming in. As directors, we’ll also be following our rights.”
Proceeds of the rights offer will be used to fund the acquisition of quality A-grade properties in Greenstone Hill Office Park and settle floating debt. Post the acquisition, VPIF will own 11 of the 15 properties in the office park.