Chief Executive Officer of Fairvest, Darren Wilder
Niche property investment fund manager, Fairvest Property Holdings today announced that it has raised R137 million through a successful vendor placement. The company placed 71 802 000 shares at 191 cents per share with investors. Fairvest said that the proceeds would be utilised to fund acquisitions and/or repay debt facilities which were used to fund recent acquisitions.
Fairvest recently announced the R229 million acquisition of two key shopping centres in Bloemfontein’s non-metropolitan consumer market, which is expected to transfer in July 2015. Both properties have been acquired at a favourable forward acquisition yield of 10%, which the company said would assist in maintaining Fairvest’s superior distribution growth.
Chief Executive Officer, Darren Wilder says that “Retail properties targeted at the lower LSM consumer market is a high growth and relatively underdeveloped end of the property market. Fairvest’s portfolio of quality assets in this strategic segment provides investors with direct and appealing access to this high-yielding niche market.”
Fairvest owns and manages a portfolio of 33 properties, with 129 903m² of lettable area valued at R1 183.6 million and is a registered REIT. The group focuses on retail assets in non-metropolitan shopping centres, as well as convenience, community and regional shopping centres servicing the lower LSM market in high-growth nodes, close to commuter networks.
