By Andries Mahlangu

Redefine Properties International debuted on the JSE on Tuesday, with the property group's directors dominating trade in shares on the first day.

Total volumes traded stood at 1.636 million shares as at 17.00 local time. Of these shares, three company directors jointly bought 905,748 shares.

Shares in the company traded between R5.70 and R5.90, closing at R5.80 per linked unit.

RIN executive director, who is also the CEO of Growthpoint Properties, hailed the listing, saying the company will look into growth opportunity areas including acquisitions with the R955.6 million (£84 million) it raised through a private placement.

RIN successfully placed 168.1 million of its linked units with qualifying investors at an issue price of R5.6859 per linked unit (50 pence issue per private placement unit).

Redefine International is a property investment and development group which has investments in commercial and retail investment properties in the UK, Switzerland, Germany.

The main purposes of the listing and the private placement are to provide South African investors, both institutional and private, the opportunity to participate in the income streams and future capital growth of Redefine International plc through an investment in Redefine International, and provide an additional source of capital to fund the growth aspirations of the group.

But Paul Duncan, property analyst at Catalyst Fund Managers, said the company's 50 pence per linked unit is overly priced given that its net asset value is around 40 pence a share.

"The company's forward yield of 8% should be balanced against the associated risks involved in the space that the company operates in," he says.

Source: I-Net Bridge