Rebounding SA Corporate to use funds from bookbuild for residential investments
SA Corporate Real Estate Fund has raised just more than R600m through an oversubscribed accelerated bookbuild, indicating improving investor sentiment towards the property group. The group has undergone a major turnaround under the stewardship of MD Rory Mackey. The funds will be used primarily to grow the company’s residential portfolio. Ordinary shares will also be placed. "Due to substantial oversubscription, SA Corporate increased the number of placing shares to 114,171,025 — representing 4.9568% of the ordinary issued share capital of the company. The placing would price at R5.30 per ordinary share and raise gross proceeds of approximately R600m," the group said. Mackey said SA Corporate had recognised that the residential subsector of listed property had strong growth potential. "The proceeds are going to be deployed particularly in growing the company’s residential portfolio, which offers the company accretive investments in a defensive property class. We are pleased with the...
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