VPIF Announces Final Terms Of R455 Million Rights Offer

  • Will fund acquisition of properties in Greenstone Hill Office Park and settle floating debt
  • Positively received by market with leading institutions following their rights

Vunani Property Investment Fund (VPIF), the only JSE listed property fund to offer investors significant exposure to commercial offices, today announced the amended terms of its rights offer to raise up to R455 million.

VPIF CEO, Rob Kane

VPIF CEO, Rob Kane

The Fund will offer a total of 47 894 737 linked units (“rights offer units”) to unitholders at a subscription price of R9.50 (“clean price” which excludes the accrued distribution) in the ratio of 39.70776 rights units for every 100 linked units held on the record date for the rights offer.

In addition to the R9.50 clean price, VPIF will also pay the accrued distribution for the period 1 January 2013 to 30 June 2013, estimated to be 32.5 cents per unit to unitholders who exercise their rights. As a result, the rights offer units will be entitled to the full final 2013 distribution.

The subscription price of R9.50 per linked unit represents a 3% 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 high-yielding 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.

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