Arrowhead: Issue of linked units raises R490m

Arrowhead completed last week an accelerated book build to qualifying investors, which was heavily oversubscribed. The listed property fund issued 36 million A and B linked units for a combined consideration of R490 million. The issue price of the units represented a discount of 3.17 percent to the closing price on January 22, the day before it was launched. Proceeds of the private placement will be used to partially fund acquisitions worth R650m that were announced last month, including the Sasol Building in Rosebank from the Sasol Pension Fund for R250m, with R125m paid in cash and the balance in linked units, and 333 residential units let to Monash South Africa from Standard Bank for R150m cash. The A linked units fell 0.29 percent to R6.83 on Friday.