April 23 (Bloomberg) -- Redefine Properties Ltd., South Africa’s second-biggest property developer, raised 800 million rand ($87 million) to finance acquisitions and retail and office projects as a share issue was oversubscribed.
The company closed its book after raising 23 percent more than the 650 million rand target announced earlier today, it said in a statement. The 78.4 million new shares will be priced at 10.20 rand and will be listed on May 3, the company said.
Redefine shares declined as much as 2 percent and traded 0.7 percent lower at 10.42 rand by 4:34 p.m. in Johannesburg, valuing the company at 29.1 billion rand.
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, 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, 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., 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.
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