Vukile raises R1bn through equity sale

Connie Queline

Vukile raises R1bn through equity sale

South African commercial property group Vukile Property Fund raised R1 billion ($52.79 million) from the sale of 68.5 million new ordinary shares via an accelerated book build.

The specialist retail real estate investment trust, which holds assets worth R40 billion in South Africa and Spain, said the equity raised would help it capitalise on growth opportunities.

“As part of Vukile’s ongoing growth strategy, we have identified and are evaluating an attractive pipeline of financially accretive, strategically aligned direct property acquisition opportunities in both South Africa and Spain,” CEO Laurence Rapp said in a statement.

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In the short term, the proceeds will be used to temporarily reduce borrowings in anticipation of the closing of potential acquisitions.

The capital raise will also reduce Vukile’s loan-to-value ratio, a metric used to determine the credit risk of a loan, which stood at 42.9% as of September 30.

The shares were placed at a price of R14.60 each.

Read the Sens here.

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