Fortress to raise R1.35bn in bookbuild
JSE-listed real estate investment trust Fortress Real Estate Investments has placed 55.67-million B ordinary shares at R24.25 a share as a bookbuild placement following strong institutional demand.
The shares represent about 4.5% of the company’s total B ordinary shares in issue and will raise gross proceeds of about R1.35-billion, it says.
“The proceeds will advance the rollout of our South African and Central and Eastern European logistics development pipeline, as well as assist us to close out existing retail opportunities that align with Fortress’s investment criteria,” says Fortress CEO Steven Brown.
“Until these development, expansion, enhancement and acquisition opportunities are finalised, the placement proceeds will be deployed in a manner designed to avoid material cash drag and to maintain a healthy loan-to-value position,” he notes.
The logistics sector continues to benefit from structural tailwinds including the rapid growth of e-commerce, the reconfiguration of regional supply chains and increasing demand for modern, well-located and safe warehousing across South Africa, as well as Central and Eastern Europe.
The price represents a 1% discount to the company's 30-day volume weighted average price, which reflects the quality of demand from domestic and international institutional investors, and the market’s conviction in Fortress’s long-term strategy.
The placement shares will be issued under Fortress’s existing general authority to issue B ordinary shares for cash, as granted by shareholders at the AGM held on December 1, 2025.
“The strong institutional demand for this placement is a clear vote of confidence in Fortress’s strategy and the quality of our logistics pipeline across South Africa and Central and Eastern Europe.
“We are well positioned to convert this capital into value-accretive developments and acquisitions that will underpin long-term distribution growth for our shareholders,” says Brown.
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