The group has undergone a major turnaround under the stewardship of MD Rory Mackey. The funds will be used primarily to grow the company's residential portfolio.
Ordinary shares will also be placed.
"Due to substantial oversubscription, SA Corporate increased the number of placing shares to 114,171,025 - representing 4.9568% of the ordinary issued share capital of the company. The placing would price at R5.30 per ordinary share and raise gross proceeds of approximately R600m," the group said.
Mackey said SA Corporate had recognised that the residential subsector of listed property had strong growth potential.
"The proceeds are going to be deployed particularly in growing the company's residential portfolio, which offers the company accretive investments in a defensive property class. We are pleased with the successful bookbuild undertaken overnight and the investor interest in the company evidenced by the substantial oversubscription."
The pricing was at a discount of 1.8% to the 30-day volume-weighted average price up to and including Tuesday, 4 October.
Mackey said residential property would prove to be resilient in challenging economic times, given that it was non-discretionary spending.
Analysts have said SA Corporate has become an attractive buy under strong management.
"After some struggles with non-performing assets, the company has been turned around. The share price has improved a lot over the past couple of years," Stanlib listed property analyst Lawrence Koikoi said.
Source: Business Day
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