Fairvest raises R137 million for acquisitions through successful vendor placement

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.