Equites Property Fund: Firm ‘delighted’ with private placing

The Equites Property Fund, which is scheduled to list in the industrial and office real estate investment trust sector of the JSE next week, yesterday reported that it had successfully raised R650 million in a private placing of shares with local institutional investors. The fund said there was keen interest in the private placing and the offer was significantly oversubscribed. It said it placed 65 million shares with a broad base of quality investors at an issue price of R10 a share. The Western Cape-based fund expects to list 95.5 million shares on the JSE on June 18 and, assuming all its post-listing acquisitions are finalised, will have a portfolio of 17 industrial and office properties valued at R1.2 billion. The fund is internally managed and will specialise in the industrial sector of the property market only, but have selective exposure to office property. Andrea Taverna-Turisan, the chief executive, said Equites was delighted with the outcome of the placement process and the proceeds would be used to reduce interest bearing debt to less than 5 percent of loan-to-value. “The fund has an attractive pipeline of significant A-grade industrial developments and A-grade and brownfield acquisitions, which will be funded by debt. Equites has secured a R600m facility with Nedbank to undertake these projects,” he said. – Roy Cokayne