Delta Africa, the first multi-listed property fund to offer international property investors direct access to immediate high growth opportunities on the African continent outside of South Africa, today announced a successful capital raise equivalent to ZAR 156 million.
The Company placed 6 124 370 ordinary shares at an issue price of US$1.70 per share (equivalent to ZAR 25.43795 at an exchange rate of US$1 = ZAR14.9635).
“The issue was at a premium of US$5.3 cents to the last published net asset value per share of Delta Africa, and well supported by our key shareholders,” commented Bronwyn Corbett, Chief Executive of the Company. (At the last published date, Delta Africa’s net asset value was US$1.6469 per share and the share traded at R19 per share.)
“The proceeds of the capital raise will be used to offset liabilities relating to our acquisition of a 50% interest in two malls located in Kitwe and Ndola in Zambia from Rockcastle Global Real Estate Company Limited earlier this year, as well as Zimpeto Square, a small retail centre acquired in Maputo, Mozambique” Corbett explained.
In a separate announcement, Delta Africa indicated that the Zambian acquisitions have become unconditional and were implemented on 11 December 2015.
The successful capital raise and implementation of the Zambian acquisition come at a time when South African investors are increasingly looking at high-growth rand hedge opportunities in stable economies.
“Delta Africa’s recent strategic alliance with The Pivotal Fund to form Mara Delta Property Holdings provides the first pure Africa property play (outside of South Africa) of scale, providing investors not only with the opportunity to participate in high-growth economies on the continent, but also in solid distribution income,” said Corbett.
Listed on both the JSE’s Main Board and the Stock Exchange of Mauritius, Delta Africa recently entered the Mauritian property market with the announcement of the acquisition of Barclays House in Cybercity, Ebene.
According to the Company, this acquisition is set to become unconditional imminently, at which time the Company will make further announcements.
Delta Africa intends to fund the purchase consideration by way of a vendor consideration placement of Delta Africa shares to third parties and debt from a Mauritian bank. As required under Mauritian law, the agreement takes the form of a compromis de vente. Following the fulfilment of the suspensive conditions, a formal deed of sale will be concluded.