Commercial property development company Heartwood Properties has successfully conducted a capital raise on the exchange operated by 4AX.
The capital raise, which took place towards the end of 2018, was fully subscribed, in terms of which 4.5 million new ordinary shares were issued to participants, resulting in Heartwood Properties’ shareholder base increasing materially.
Heartwood Properties CEO John Whall reveals this was not a public offer but rather a private invitation to specifically selected individuals to submit subscription offers in order to raise capital to fund future developments, in particular the Soleil commercial property development project in Bryanston, Johannesburg.
"Our objective was to grow the net asset value on the balance sheet and provide retail cash for this new development," he says.
He says Heartwood Properties' property investments have all experienced significant organic growth during the past few years. This has been achieved, says Whall, by consistently applying quality value-added principles which has seen the company's property portfolio grow from an asset base of R52.6m in February 2014 to R120m in August 2018.
According to Whall, the company will utilise its status as a listed company to continue to raise capital from the market for future developments as and when they are rolled out, which is anticipated to further grow the company’s shareholder base.