Redefine International successfully completed its accelerated bookbuild capital raise earlier today. The placement was substantially oversubscribed with strong demand from both the UK and South African investors resulting in the total share placement being increased to 9.9% of the current issued ordinary share capital prior to the Placing.
The bookbuild raised approximately £54.7million (ZAR1billion) in aggregate, with UK Placing Shares issued at 47.50 pence per Placing Share and South African Placing Shares at R8.75 per Placing Share. The issue price of the Placing Shares represents a discount of circa 6% to the closing share prices on 19 February 2014.
Mike Watters, CEO of Redefine International, says: “We are delighted with the response to the capital raise. Investors in both the UK and SA share registers showed their continued confidence in the direction of the Group and we are now well placed to continue to deliver on our strategy of sustainable earnings growth.”
The proceeds will be used to, inter alia, acquire further minority interests in the existing portfolio, undertake significant asset management initiatives in assets in the company’s German retail property portfolio, manage the debt expiry profile and fund potential acquisition opportunities.
Watters adds: “Against a backdrop of improving markets and a benign interest rate environment, we see a growing number of opportunities for us to create and enhance sustainable value through selective acquisitions, accretive asset management opportunities and the early refinancing of our facilities. The proceeds from the placement will provide a strong platform to allow us to continue to deliver our sustainable income growth strategy, while pursuing our drive to achieve FTSE 250 index inclusion.”
Redefine International is a UK-REIT with a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.
Redefine International’s geographically diverse investment portfolio is independently valued over £1 billion and comprises real estate assets in the retail, office, industrial and hotel sectors across the UK, Europe – specifically Switzerland, Germany, the Netherlands and the Channel Islands – and Australia.
For South African investors it represents a Rand hedge in a stable, sustainable income fund with exposure to real estate in first world markets.