Spear Reit has successfully raised R1bn in an accelerated bookbuild, which was multiple times oversubscribed.
The group said on Thursday that about 78.74-million new shares were placed at an issue price of R12.70 per share. The issue price represents a premium of 0.1% to Spear’s weighted average traded share price over the 30 trading days up to and including April 22.
The listing of the shares is expected to be effective from April 30, it said.
Spear will use the proceeds to accelerate its growth strategy. It said it looks forward to implementing its “attractive near-term pipeline of convenience retail, commercial and industrial acquisition opportunities, and to executing the brownfield development projects and asset management initiatives previously communicated to the market.”
Earlier this month. Spear announced it is to acquire the Watergate Centre in Mitchells Plain in the Western Cape for R442m as it continues to expand its footprint in community-focused retail.
The deal, signed with MPW Cape Properties, includes the shopping centre and its rental business. The transfer is expected in August, subject to approval by competition authorities.
Spear said the acquisition aligns with its strategy of investing in shopping centres that meet everyday consumer needs and provide stable rental income.
Spear was recently included in the JSE all property index (Alpi), a key benchmark for listed property companies in South Africa.
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