Vukile Property Fund, a South African commercial property group, has successfully raised R1 billion through the sale of 68.5 million new ordinary shares via an accelerated book build.
This specialist retail real estate investment trust, with assets valued at R40 billion in both South Africa and Spain, stated that the equity raised would support its pursuit of 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,” said CEO Laurence Rapp in a statement.
In the near term, the funds will be utilised to temporarily reduce debts in anticipation of potential acquisitions.
This capital raise will also decrease Vukile’s loan-to-value ratio, at 42.9% as of 30 September, thereby positively impacting its credit risk profile.
The newly issued shares were priced at R14.60 each.
The group’s share price is up around 11% over the past year, to R14.59.
