Emira raises a further R450m to fund its capital projects and replace balance of notes issued in terms of CMBS

Posted On Monday, 12 November 2012 10:28 Published by eProp@News
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Emira Property Fund has raised a further R450m in debt to help fund the extensions of its Wonderpark Shopping Centre in Pretoria and to pay back the balance of the notes that were issued by Freestone Finance Company (Pty) Ltd in March 2008 and were due for repayment early next year. 

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The R450m worth of 12-month commercial paper (CP) was issued by private placement with two financial institutions.  The issue date was 7th November 2012, while the rate payable on the debt was Jibar + 75 basis points, which equates to 5.825% NACQ.

Emira CEO, James Templeton, says:

“The money raised will be used to refinance the balance of the Emira securitisation of R250m, which was due for repayment on the 31st March next year, while the remaining R200m will be used as the first tranche for funding for the extensions to the Wonderpark Shopping Centre in Pretoria. The total cost of the extensions at Wonderpark, which should be completed by May 2015, will be R513m in total.

Templeton says that pushing out the repayment date on the R250m facility from March to November next year reduces the short term roll-over risk to the fund. There is also a reduction in the all-in margin on the R250m securitisation from 89 basis points to 75 basis points, which helps in the reduction of interest costs, and, finally, it secures the first portion of funding for the extensions to Wonderpark centre. The balance of the funding for the Wonderpark extensions will be funded by proceeds from sales, further debt issuances or equity.

“Once completed the newly extended Wonderpark Shopping Centre will be Emira’s largest asset both by value and gross lettable area. We are proposing to enlarge the centre from 63 000m² to a super-regional centre of 90 000m². This extension, which is being driven by demand from large national tenants, such as Woolworths, Game and Truworths, as well as shopper buying patterns, will yield an incremental 8.4% to Emira PI holders on the R513.5m capital expenditure as well as improve the tenant mix on secured long term leases and ensure the centre’s dominance in the region.”

Last modified on Friday, 18 April 2014 13:18

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