Vukile CEO Laurence Rapp
JSE-listed Vukile Property Fund will issue R1-billion of new ordinary shares following a successful accelerated bookbuild, with the funds to be used to capitalise on a pipeline of growth opportunities.
In the short term, the proceeds of the equity raise will also be used to temporarily reduce borrowings in anticipation of the closing of potential acquisitions.
The capital raise will also reduce Vukile’s loan-to-value ratio.
Vukile is a real estate investment trust that predominantly owns retail assets across South Africa and Spain. Vukile’s R40-billion worth of assets are split 40% in South Africa and 60% in Spain.
The company attributes the strong market confidence in its prospects to its strong performance indicators, clear strategy and track record of delivery.
CEO Laurence Rapp says the company has identified and is evaluating an attractive pipeline of financially accretive and strategically aligned property acquisition opportunities in South Africa and Spain.
“Pricing remains fragmented in the current market environment, which rewards certainty and speed of execution. The capital raised will place Vukile in a financially agile position underpinned by a strong balance sheet and enhanced funding optionality,” he adds.
Vukile nonetheless remains focused on maintaining a conservative balance sheet as its foundation for efficient capital management.