Rebosis Property Fund, the JSE listed entity managed by Sisa Ngebulana’s Billion Group announced yesterday that it has successfully raised R650 million in a rights offer.
The group said the offer was oversubscribed. That comes to reinforce the confidence on the first black-managed and substantially black-held property fund to have listed on the JSE about two years ago. Rebosis listed with a portfolio valued around the R2bn mark and has doubled the value over two years. Developments in the pipeline will see the group approaching the R10bn in the near future.
“We are very pleased with the successful rights offer and the strong support from our institutional investors. The proceeds will be used to reduce gearing and strengthen Rebosis’ balance sheet,” said Ngebulana.
“We have been on a strong acquisition drive in the latter part of last year. This rights issue enables us to move quickly on other pipeline opportunities as we have access to cash to conclude future transactions.”
In November last year, Rebosis announced the acquisition of Sunny Park retail center from Zenprop. The center comprises 24 318 m2 retail space including a Virgin Active Gym and 3 179 m2 office space and 608 parking bays. The center is located towards the east of the Pretoria CBD and brings the number of large, regionally dominant retail centers in the portfolio to four.
At the same time, Rebosis also announced the acquisition of an 18 729 m2 warehouse tenanted by Antalis. Antalis has occupied the property since 1995 and the lease, which expires in 2019, is underpinned by its parent company which is listed on the Paris stock exchange.
In December 2012 Rebosis announced the conclusion of agreements to acquire a number of large, high quality and defensive commercial properties tenanted by national and provincial government as well as blue chip corporate tenants from the Nthwese Trust and Peolwane Properties.
The rights issue subscription price for the rights offer linked units was R11.20 per linked unit and a total of 58 035 718 new Rebosis linked units will be issued, increasing the total issued linked unit capital of the Fund to 307 183 417 linked units.