Johannesburg - Local investors have welcomed Redefine International’s private placement by buying 168.1m linked units worth £84m (about R951m).
A maximum of 180m linked units in an international portfolio of properties had been available at a price of 50p per unit, ahead of Redefine International’s imminent listing on the JSE on September 7.
Macquarie First South property analyst Leon Allison said an investment in Redefine International seemed favourable for South African individuals and also for pension and retirement funds which want exposure to foreign property without using their foreign allowances. In the past such investors could invest only in Capital Shopping Centres without using their foreign allowances.
Allison said that in pounds Redefine International’s expected 8% income yield also looks relatively attractive compared with Capital Shopping Centres' income yield of about 4.5%.
He said investors should however keep in mind that the higher yields for Redefine International carried greater risk.
Redefine International chief executive Mike Watters said the company would use some of the capital raised to subscribe for additional shares in Redefine International plc, and try to repay Redefine Properties for a loan used to finance a further investment in Australia’s Cromwell Group.
- Sake24.com
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