Property loan stock company Delta Property Fund was expected to raise R980-million in a JSE listing on November 2.
The group, which would list up to 119.5-million shares at R8.20, secured several “precommittments” for an aggregate amount of R970-million, of which R850-million or 103.6-million linked units were accepted.
The commitments were sourced from Coronation Asset Management, Stanlib Asset Management, the Public Investment Corporation, Momentum Asset Management and Grindrod Asset Management.
Delta would use the net proceeds of the listing to fund a portion of its R2.1-billion portfolio, while reducing overall gearing levels.
The remainder of the cost of capital would be financed through bank debt, resulting in a loan-to-value ratio of approximately 40%, Delta said in a statement.
Delta’s portfolio comprises 20 buildings totalling a gross lettable area of 203 261 m2, with 92% office space and an 8% retail component.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
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