Redefine International to use some capital to repay loan

Posted On Friday, 03 September 2010 02:00 Published by eProp Commercial Property News
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Redefine International says that part of the capital raised in its private placement of units will be used to subscribe for additional shares in Redefine International plc.

Mike WattersRedefine International, which is to list on the local bourse on Tuesday, said yesterday that part of the capital raised in its private placement of units would be used to subscribe for additional shares in Redefine International plc, the operating entity in the UK.

The company also wanted to use the money to repay a loan from JSE-listed Redefine Properties, which was used to fund a further investment in Cromwell Group in Australia.

Redefine International is a Jersey-registered property investment company with a portfolio of 93 properties across the UK, Germany, the Channel Islands and Switzerland, valued at £420 million.

The group invests in commercial real estate and also in listed securities, primarily in the UK, Europe and Australia.

The group owns strategic stakes in the London Stock Exchange-listed Wichford (21.7%) and Australian-listed Cromwell Group (12.97%) and is managed by Redefine International Fund Managers.

South African-based Redefine Properties owns a significant stake in Redefine International.

Redefine International, which is expected to have an initial market capitalisation of R1.9 billion when it lists locally, successfully placed 168.1-million linked units, amounting to £84 million, under the private placement.

The company said a maximum of 180-million private placement units at a price of 50 per unit were available under the private placement.

The company received applications for 153% of the minimum subscription amount of £55 million.

Redefine International, which will list in the “Real Estate, Real Estate Holdings and Development” sector of the main board of the JSE, plans to use the balance of the capital raised to expand the group’s business of investing in commercial, retail and hotels primarily in the UK and Europe and to increase its holdings in selected property related listed securities in the UK and Australia.

Redefine International CEO Mike Watters said the private placement was well received by South African investors hoping to benefit from “innovative rand-based” opportunit ies to invest in an international portfolio of property investments.

Redefine International would list a total of 336.7-million linked units at an issue price of R5.69 per linked unit locally.

After the private placement, Redefine Properties will hold 57.9% of the Redefine International linked units in issue.

As applications in excess of the minimum amount were received, Redefine Properties would not be required to subscribe for any private placement units in terms of its underwrite commitments.

Last modified on Monday, 21 April 2014 18:50

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