(Corrects name of company in fifth paragraph.)
Redefine Properties Ltd. (RDF), South Africa’s second-biggest property developer by market value, will issue new shares to finance acquisitions and develop retail and office projects.
The company plans to raise 650 million rand ($70.1 million) through an accelerated book build process, with a minimum of 1 million rand per investor, the Johannesburg-based company said in a statement today. Java Capital is the only bookrunner.
The funds will go toward financing deals such as the recently acquired East Rand Mall to the east of Johannesburg as well as new offices and shopping centers, Redefine Chief Executive Officer Marc Wainer said in a phone interview today. The company has increased its stake in Brisbane, Australia-based Cromwell Diversified Property Trust to 10 percent from 5 percent, he said.
Redefine also wants to add new retail assets to the portfolio of Fountainhead Property Trust (FPT), in which it has a 46 percent stake after spending 5 billion rand in cash and shares. Fountainhead is the subject of a takeover approach by Growthpoint Properties Ltd (GRT), South Africa’s largest real estate company.
“We are in control of the management,” Wainer said. “We are going to do our best to extract value.” Hyprop Investments Ltd. (HYP), another South African shopping mall owner, wants to raise almost 1 billion rand with bonds in order to lower borrowing costs and increase its retail portfolio in continental Africa.
Redefine shares were down 0.9 percent by 1:39 p.m. in Johannesburg, valuing the company at 29.1 billion rand.
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