The group had initially sought R400m through the placement to partly fund acquisitions valued at R650m‚ which it announced last year. It managed to raise R490m.
The properties its wants include Sasol's office building in Rosebank‚ Johannesburg and residential units at Monash University, also in Johannesburg.
In light of the private placement being over-subscribed at a discount of just over 3%‚ the amount of capital to be raised in terms of the private placement was increased to R490m.
A total 36 431 228 new A and B linked units were placed with qualifying investors at a combined price of R13.45 per linked unit.
Chief operating officer Mark Kaplan said the over subscription suggested confidence in Arrowhead.
"We are very pleased. We were expecting a 5% discount and not such a large over-subscription. We did not realise investors were so confident. The market is nervous because of various macro-economic factors including US tapering‚" he said.
Arrowhead's results for the year to September‚ released in November last year‚ showed it had achieved 12.36% growth in distributions‚ well above the 7% average growth in the sector and the forecast of 10% for the year.
Arrowhead's portfolio is worth around R3.6bn and would grow to R4.1 bn from February this year.
Kaplan said Arrowhead was on track with its 2014 plans so far. "We should maintain double-digit distribution growth and beat the sector average‚" he said.
Arrowhead would continue its strategy of growing through acquisitions. Kaplan said Arrowhead's model was to make yield-enhancing and risk-diversifying acquisitions.
Investec Asset Management analyst Peter Clark said Arrowhead's distribution growth and acquisitions at good yields were why it was so attractive to investors.
"Arrowhead is something we like. They have above-sector-average distribution growth‚ mainly driven by accretive acquisitions where they have a good track record of buying assets at yields in excess of 10%‚ while their cost of funding is significantly lower‚" he said.
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