Print this page

Octodec raises R390m to support R1bn development pipeline

Posted On Tuesday, 14 July 2015 13:06 Published by
Rate this item
(0 votes)

JSE listed REIT Octodec, successfully raised R390 million through an accelerated bookbuild which was significantly oversubscribed.

 

Jeffrey Wapnick

The capital raised will be used to partially fund the company’s R1 billion current development pipeline which includes significant developments in the Tshwane and Johannesburg inner cities. Jeffrey Wapnick, Octodec MD, commented: “Our stronger balance sheet has enabled us to undertake larger developments of 300 to 400 residential units that will contribute to the renewal of the Tshwane and Johannesburg CBDs where the bulk of our properties are situated. 

“The focus of these developments is largely on the residential sector which has proven to be resilient in tougher economic conditions, as demand for quality accommodation continues to outstrip supply.” Java Capital acted as sole bookrunner for the bookbuild. 15 918 367 shares were placed with qualifying investors at an issue price of R24.50 per share.

Anthony Stein, Octodec Financial Director, said: “We welcome our new investors which have enhanced our shareholder spread. The support received demonstrates the confidence in our hands-on management style and proven track record to unlock value through the development of existing properties in our portfolio. “This successful capital raise will also reduce our loan to value (LTV) level in line with our target of below 40%.” 

The new shares are expected to list and trade from the commencement of business on 22 July 2015. 

 

eProperty News

Latest from eProperty News

Related items