Octodec MD Jeffrey Wapnick
JSE-listed real estate investment trust Octodec has raised R390-million to partially fund its R1-billion development pipeline, including developments in the Tshwane and Johannesburg inner cities.
The property group, which on Tuesday placed 15.9-million shares with qualifying investors at an issue price of R24.50 apiece through an oversubscribed accelerated bookbuild, currently had multiple inner city and mixed-use development projects under way.
“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 central business districts (CBDs), where the bulk of our properties are situated,” Octodec MD Jeffrey Wapnick said.
The R326.9-million Centre Forum greenfield residential development, which comprised 400 residential units, and ground-floor retail space and parking areas in the Tshwane CBD, was set for completion in late 2016.
The R140.4-million greenfield mixed-use development, 1 on Mutual, situated adjacent to Church Square, in the Tshwane CBD and comprising 142 residential units, 400 m2 of prime office space, ground-floor retail space and parking areas, would be completed in early 2016.
Further, the R56.7-million second-phase retail redevelopment at Silver Place, in Silverton, Tshwane, would be completed this year, while the R129.3-million redevelopment of Bosman Place, in the Johannesburg CBD, with 225 additional residential units and a retail component, was nearly complete.
The company also planned to convert the recently acquired office block, Reinsurance House, in the Johannesburg CBD, into 175 residential units at a cost of R68.3-million.
“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,” Wapnick explained.
The capital raise, the new shares of which would be listed on the JSE on July 22, was expected to reduce Octodec’s loan-to-value level in line with its target of below 40%.