Rebosis Property May Sell Shares to Finance New Deals
(Corrects headline, first paragraph to show company may sell shares and debt for story published May 23.)
Rebosis Property Fund Ltd. (REB), a South African real estate company, may sell shares or raise debt to help fund the purchase of offices and a shopping mall.
An “option being considered is to tap the equity market,” Chief Financial Officer Janys Finn said in a phone interview today. “We have got shareholders approval to raise as much as 1.08 billion rand from the market.”
The decision by Johannesburg-based Rebosis follows a similar move by South Africa’s two largest real estate companies, Redefine Properties Ltd. (RDF) and Growthpoint Properties Ltd. (GRT) Growthpoint raised 2.5 billion rand through the sale of 90 million shares this week to fund deals and existing projects.
Rebosis will use part of the funds to acquire a portfolio of office properties from Nthwese for 1.06 billion rand, Finn said. The office properties are let to the Gauteng province and the national government. Rebosis also acquired the Sunny Park Mall in Pretoria for 580 million rand.
“After these acquisitions, our portfolio will be valued at 6.5 billion rand, which positions our company to look at the bond market for the first time,” Finn said. “Our current debt maturity profile is about two years and we plan to extend it to three to five years.”
Rebosis shares declined for a second day, falling 3.3 percent to 13.15 rand at 2:56 p.m. in Johannesburg, giving the company a market value of 4 billion rand. The stock has gained 14 percent this year, outpacing an 11 percent advance in the 22-company FTSE/JSE South Africa Listed Property Index.
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