Rebosis gets support for Nthwese deal

Rebosis Property Fund on Wednesday (22 May) reported overwhelming support from its linked unit-holders with 99.9% of votes cast approving the fund's capital raising scheme to buy the Nthwese property portfolio.

23 May 2013

"We are humbled by this overwhelming support." said the fund's chief executive Sisa Ngebulana. "The linked unit-holders' approval provides us with the option to raise up to R1.080bn in fresh capital from the market.

"It is unlikely that we'll raise the entire amount through equity, though" Ngebulana said.

"We are able to attract debt at preferential rates and are currently in the process of optimising the funding structure. We should be able to come to market on the equity side in the next couple of weeks," he added.

The Nthwese portfolio is dominated by national and provincial government with an element of blue chip corporate tenants. This portfolio‚ which includes the iconic IBM building at 124 Main Street in Johannesburg‚ is underpinned by long-term leases expiring in 2019 and 2020‚ providing linked unit-holders with predictable revenue streams with low forecast risk.

The portfolio comprises five properties with a combined gross lettable area of 67‚952 m² with virtually no vacancies. The properties are located in established nodes within the Johannesburg and Pretoria CBDs offering direct access to public transport routes and infrastructure.

"The deal is yield enhancing and supports our strategy to acquire large‚ preferably single-tenanted buildings in nodes attractive to government and big business." Ngebulana said.

Source: I-Net Bridge

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